Understand why↗
ARMA models require the time series to be stationary. A series with an upward trend has a moving mean, which violates the stationarity condition of having a constant mean over time.
Conditions: The model class is AR, MA, or ARMA.; The series exhibits a non-constant mean (trend).
0:58 – 1:38Watch this moment ↗
ARMA models require the time series to be stationary. A series with an upward trend has a moving mean, which violates the stationarity condition of having a constant mean over time.
Conditions: The model class is AR, MA, or ARMA.; The series exhibits a non-constant mean (trend).
0:58 – 1:38Watch this moment ↗