# Example 1.12 in notes; oil price data, log-transformed data(oil.price) n=length(oil.price) n.ahead=24 xo=data.frame(t=1:n,t2=(1:n)^2) f=arima(log(oil.price),order=c(0,1,1),xreg=xo) xf=data.frame(t=(n+1):(n+n.ahead),t2=((n+1):(n+n.ahead))^2) plot(f,n.ahead=n.ahead,newxreg=xf, ylab='Oil Price',xlab='Year',n1=c(2000,1),transform=exp) # thermal data from midterm, quadratic trend y=ts(read.table("http://people.stat.sc.edu/hansont/stat520/thermal.txt"),start=1) n=length(y) n.ahead=20 xo=data.frame(t=1:n,t2=(1:n)^2) f=arima(y,order=c(0,1,1),xreg=xo) f xf=data.frame(t=(n+1):(n+n.ahead),t2=((n+1):(n+n.ahead))^2) plot(f,n.ahead=n.ahead,newxreg=xf, ylab='temp',xlab='day',n1=100) # thermal data, linear trend xo=data.frame(t=1:n) f=arima(y,order=c(0,1,1),xreg=xo) f xf=data.frame(t=(n+1):(n+n.ahead)) plot(f,n.ahead=n.ahead,newxreg=xf, ylab='temp',xlab='day',n1=100) # thermal data, no trend f=arima(y,order=c(0,1,1)) f plot(f,n.ahead=n.ahead, ylab='temp',xlab='day',n1=100)