Update 2

chandinijain · chandinijain · commit fda79daa191a · 2017-02-27T21:10:25.000+05:30
diff --git a/Time Series Analysis - 2.ipynb b/Time Series Analysis - 2.ipynb
@@ -601,7 +601,7 @@
    "source": [
     "## Moving Average Models - MA(q)\n",
     "\n",
-    "MA(q) models are very similar to AR(p) models. MA(q) model is a linear combination of past white noise error terms as opposed to a linear combination of past observations like the AR(p) model. The motivation for the MA model is that we can observe \"shocks\" in the error process directly by fitting a model to the error terms. In an AR(p) model these shocks are observed indirectly by using the ACF on the series of past observations. \n",
+    "MA(q) models are very similar to AR(p) models. MA(q) model is a linear combination of past error terms as opposed to a linear combination of past observations like the AR(p) model. The motivation for the MA model is that we can explain \"shocks\" in the error process directly by fitting a model to the error terms. (In an AR(p) model these shocks are observed indirectly by using past observations) \n",
     "\n",
     "$$x_t=w_t+\\beta_1w_{t-1}+…+\\beta_qw_{t-q}$$ \n",
     "\n",
