ABSTRACT

We have seen that there are two types of dynamic models for prediction, one is a class of deterministic dynamic models and another is a class of nondeterministic (or stochastic) dynamic models. Note that a deterministic model can be regarded as a limit of nondeterministic model in the sense that the prediction error of the nondeterministic model is zero. Although the two groups of models, deterministic models and stochastic models, are closely related, the tools and theories developed for each of them are quite different.