The Ljung-Box test is a statistical test used to determine whether a time series is independently distributed, which means that there are no autocorrelations at any of the specified lags. This test is particularly useful in the context of evaluating the residuals from ARIMA models, as it helps identify if the model has successfully captured all the underlying patterns in the data. If significant autocorrelation remains in the residuals, it indicates that the model may need adjustments or improvements.
congrats on reading the definition of Ljung-Box Test. now let's actually learn it.