ABSTRACT
The previous chapter introduced two important measures, namely, ACF and CCF (and their partial versions) to detect predictability within and across series. A formal use of these measures is carried out through appropriate statistical tests. For instance, to test the predictability within a series, a whiteness test for the signal is conducted, wherein the observed (estimated) ACF is subjected to a test of hypothesis that the series falls out of a white-noise process, i.e., the ACF is zero at non-zero lags. These procedures are detailed in Chapter 16.
