An ARMAX model includes dynamic autoregressive and moving average components in addition to theoretical explanatory variables that explain variations in endogenous variables. The ARMAX model accounts for influences other than theoretical explanations; therefore, the ARMAX technique corrects the deficiencies of the econometric cause-effect technique by using dynamic filters to explain variations in endogenous variables. An explanatory part is integral to the ARMA process to construct the ARMAX technique. The ARMA part is considered a special case of ARMAX with no regressor by Greene (2000). In other words, an ARMAX (p, d, q, X) model can be explicitly represented in Equation 1,