(This article was first published on

**The Dancing Economist**, and kindly contributed to R-bloggers)Type in the following to get a Q-Q plot and a histogram on top of each other

*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.

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