Forecast-based schemes are often used to monitor autocorrelated processes, but the resulting forecast recovery has a significant effect on the performance of control charts. This article describes forecast recovery for autocorrelated processes, and the resulting simulation study is used to explain the performance of control charts applied to forecast errors.
Dyer, John N.; Adams, B. Michael; and Conerly, Michael D.
"A Simulation Study Of The Impact Of Forecast Recovery For Control Charts Applied To ARMA Processes,"
Journal of Modern Applied Statistical Methods:
2, Article 43.
Available at: http://digitalcommons.wayne.edu/jmasm/vol1/iss2/43