Modeling and Forecasting of Monthly Global Price of Bananas Using Seasonal ARIMA and Multilayer Perceptron Neural Network

The primary purpose of this study was to pursue the analysis of the time series data and to demonstrate the role of time series model in the predicting process using long-term records of the monthly global price of bananas from January 1990 to November 2020. Following the Box-Jenkins methodology, AR...

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Main Authors: Yeong Nain Chi, Orson Chi
Format: Article
Language:English
Published: Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu 2021-01-01
Series:Ekonometria
Online Access:https://journals.ue.wroc.pl/eada/article/view/947
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author Yeong Nain Chi
Orson Chi
author_facet Yeong Nain Chi
Orson Chi
author_sort Yeong Nain Chi
collection DOAJ
description The primary purpose of this study was to pursue the analysis of the time series data and to demonstrate the role of time series model in the predicting process using long-term records of the monthly global price of bananas from January 1990 to November 2020. Following the Box-Jenkins methodology, ARIMA(4,1,2)(1,0,1)[12] with the drift model was selected to be the best fit model for the time series, according to the lowest AIC value in this study. Empirically, the results revealed that the MLP neural network model performed better compared to ARIMA(4,1,2)(1,0,1)[12] with the drift model at its smaller MSE value. Hence, the MLP neural network model can provide useful information important in the decision-making process related to the impact of the change of the future global price of bananas. Understanding the past global price of bananas is important for the analyses of current and future changes of global price of bananas. In order to sustain these observations, research programs utilizing the resulting data should be able to improve significantly our understanding and narrow projections of the future global price of bananas.(original abstract)
format Article
id doaj-art-2a8e3408944841e98d48e164be565997
institution OA Journals
issn 2449-9994
language English
publishDate 2021-01-01
publisher Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu
record_format Article
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spelling doaj-art-2a8e3408944841e98d48e164be5659972025-08-20T02:09:12ZengWydawnictwo Uniwersytetu Ekonomicznego we WrocławiuEkonometria2449-99942021-01-01nr 3948Modeling and Forecasting of Monthly Global Price of Bananas Using Seasonal ARIMA and Multilayer Perceptron Neural NetworkYeong Nain Chi0Orson Chi1University of Maryland Eastern Shore, Princess Anne, MD, U.S.A.University of Maryland Eastern Shore, Princess Anne, MD, U.S.A.The primary purpose of this study was to pursue the analysis of the time series data and to demonstrate the role of time series model in the predicting process using long-term records of the monthly global price of bananas from January 1990 to November 2020. Following the Box-Jenkins methodology, ARIMA(4,1,2)(1,0,1)[12] with the drift model was selected to be the best fit model for the time series, according to the lowest AIC value in this study. Empirically, the results revealed that the MLP neural network model performed better compared to ARIMA(4,1,2)(1,0,1)[12] with the drift model at its smaller MSE value. Hence, the MLP neural network model can provide useful information important in the decision-making process related to the impact of the change of the future global price of bananas. Understanding the past global price of bananas is important for the analyses of current and future changes of global price of bananas. In order to sustain these observations, research programs utilizing the resulting data should be able to improve significantly our understanding and narrow projections of the future global price of bananas.(original abstract)https://journals.ue.wroc.pl/eada/article/view/947
spellingShingle Yeong Nain Chi
Orson Chi
Modeling and Forecasting of Monthly Global Price of Bananas Using Seasonal ARIMA and Multilayer Perceptron Neural Network
Ekonometria
title Modeling and Forecasting of Monthly Global Price of Bananas Using Seasonal ARIMA and Multilayer Perceptron Neural Network
title_full Modeling and Forecasting of Monthly Global Price of Bananas Using Seasonal ARIMA and Multilayer Perceptron Neural Network
title_fullStr Modeling and Forecasting of Monthly Global Price of Bananas Using Seasonal ARIMA and Multilayer Perceptron Neural Network
title_full_unstemmed Modeling and Forecasting of Monthly Global Price of Bananas Using Seasonal ARIMA and Multilayer Perceptron Neural Network
title_short Modeling and Forecasting of Monthly Global Price of Bananas Using Seasonal ARIMA and Multilayer Perceptron Neural Network
title_sort modeling and forecasting of monthly global price of bananas using seasonal arima and multilayer perceptron neural network
url https://journals.ue.wroc.pl/eada/article/view/947
work_keys_str_mv AT yeongnainchi modelingandforecastingofmonthlyglobalpriceofbananasusingseasonalarimaandmultilayerperceptronneuralnetwork
AT orsonchi modelingandforecastingofmonthlyglobalpriceofbananasusingseasonalarimaandmultilayerperceptronneuralnetwork