(This article was first published on

Type in the following to get a Q-Q plot and a histogram on top of each other**The Dancing Economist**, and kindly contributed to R-bloggers)*par(mfrow=c(2,1))*

*> hist(dlGDP,prob=T,12)*

*> lines(density(dlGDP))*

*> qqnorm(dlGDP)*

*> qqline(dlGDP)*

the top graph says that the errors are pretty nicely distributed around the mean

and the bottom says that they are normal. Ficcissimo!

We can take a look at the correlations between the lags with the following code:

l

*ag.plot(dlGDP,9,do.lines=F)*

Holy crap- there is strong correlation! This will help give us an idea as to what model we end up choosing.

My guide for this has been the following website:

http://www.mirrorservice.org/sites/lib.stat.cmu.edu/general/tsa2/R_time_series_quick_fix.htm

Please people keep dancin'

Steven J.

To

**leave a comment**for the author, please follow the link and comment on his blog:**The Dancing Economist**.R-bloggers.com offers

**daily e-mail updates**about R news and tutorials on topics such as: visualization (ggplot2, Boxplots, maps, animation), programming (RStudio, Sweave, LaTeX, SQL, Eclipse, git, hadoop, Web Scraping) statistics (regression, PCA, time series, trading) and more...