A Reduction of Heteroscedasticity in Time Series

  • Thread starter mertcan
  • Start date
Hi, I have some crucial questions belong to statistics:

First, How can we derive the variance function with respect to mean for a given data?

Secondly, I would like to ask: what method should we employ if the variance in time series behaves like a high order (such as ##π‘Žπ‘’_𝑑^5+𝑏𝑒_𝑑^4+𝑐𝑒_𝑑^3## polynomial function with respect to mean? On internet, I have always encountered the case where variance is a function of ##𝑒_𝑑^2 or 𝑒_𝑑^4## like in this link I have not seen a case that variance is a function such as ##π‘Žπ‘’_𝑑^5+𝑏𝑒_𝑑^4+𝑐𝑒_𝑑^3## . What should we do for the last case? How do we find the optimal power transformation or optimal other transformation methods to reduce heteroscedasticity?
Why can not I get any response? If you think my question is not explicit could you make me aware of it?

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