ction level2">
<h2 number="2.3"><span class="header-section-number">2.3</span> Moving Average Models</h2>
<p>A moving average model uses previous errors as predictors for future
outcomes. For a moving average model of order <span class="math inline">\(Q\)</span>, <span class="math inline">\(\mbox{MA}(Q)\)</span>,
there is an overall mean parameter <span class="math inline">\(\mu\)</span> and regression coefficients
<span class="math inline">\(\theta_q\)</span> for previous error terms. With <span class="mat