Ljung-Box Test

The Ljung-Box Test is a statistical method used to determine whether a time series shows patterns of correlation over different time intervals. In simple terms, it checks if past data points influence future ones or if the data behaves randomly. If the test indicates significant correlations, it suggests the data might have underlying structures or patterns. This helps in understanding whether a model adequately captures the data's behavior or if there's unexplained structure that needs further analysis.