Direct Transformation

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The keyword command setSeries installs the time series into the FANPAC global _fan_Series.    Transformations can be performed on this matrix directly before calls to estimate. Such transformations will not be taken into account by FANPAC however. Statistical procedures across estimations may be invalidated by transformations applied in between calls to estimate. It is also essential to apply the transformations to _fan_Series after the definition of any independent variables. The reason for this is that FANPAC keeps track of changes in length of the time series when computeLogReturns and computePercentReturns are called and makes an appropriate adjustment in the length of the matrix of independent variables. However a user-defined transformation on _fan_Series that changes its length will not be taken into account.



R. Schoenberg
1999-03-29