Forecasting natural rubber price in Malaysia using Arima

Zahari, Fatin Z. and Khalid, Kamil and Roslan, Rozaini and Sufahani, Suliadi and Mohamad, Mahathir and Rusiman, Mohd Saifullah and Ali, Maselan (2018) Forecasting natural rubber price in Malaysia using Arima. In: ISMAP 2017, October 28, 2017, Batu Pahat, Johor.


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This paper contains introduction, materials and methods, results and discussions, conclusions and references. Based on the title mentioned, high volatility of the price of natural rubber nowadays will give the significant risk to the producers, traders, consumers, and others parties involved in the production of natural rubber. To help them in making decisions, forecasting is needed to predict the price of natural rubber. The main objective of the research is to forecast the upcoming price of natural rubber by using the reliable statistical method. The data are gathered from Malaysia Rubber Board which the data are from January 2000 until December 2015. In this research, average monthly price of Standard Malaysia Rubber 20 (SMR20) will be forecast by using Box-Jenkins approach. Time series plot is used to determine the pattern of the data. The data have trend pattern which indicates the data is non-stationary data and the data need to be transformed. By using the Box-Jenkins method, the best fit model for the time series data is ARIMA (1, 1, 0) which this model satisfy all the criteria needed. Hence, ARIMA (1, 1, 0) is the best fitted model and the model will be used to forecast the average monthly price of Standard Malaysia Rubber 20 (SMR20) for twelve months ahead.

Item Type: Conference or Workshop Item (Paper)
Subjects: T Technology > T Technology (General)
Depositing User: Mr. Abdul Rahim Mat Radzuan
Date Deposited: 24 May 2022 01:47
Last Modified: 24 May 2022 01:47

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