ARIMA control charts for financial data

Abstract

The paper deals with financial proceeding of the company using methods of SPC (Statistical Process Control), specifically through time series control charts. This article outlines the intersection of two disciplines which are econometrics and statistical process control. The theoretical part will discuss the methodology of time series control charts and in the research part there will be demonstrated this methodology on one reseach study. The research study of the paper is devoted to application of ARIMA control chart in the financial data that are sensitive to the mean shifting while calculating the autocorrelation in the data. This paper highlights the versatility of control charts not only in manufacturing but also in managing the financial stability of turnover.