Note that the material in Sections 14.5.1-14.5.4 is considerably more technical than preceding Lessons. It is offered as an introduction to this advanced topic and, given the technical nature of the material, it could be considered optional in the context of this course.
This section provides a few more advanced techniques used in time series analysis. While they are more peripheral to the autoregressive error structures that we have discussed, they are germane to this lesson since these models are constructed in a regression framework. Moreover, a course in regression is generally a prerequisite for any time series course, so it is helpful to at least provide exposure to some of the more commonly studied time series techniques.