1. Make the series stationary. An initial analysis of the raw data can quite readily show whether...

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1. Make the series stationary. An initial analysis of the raw data can quite readily show whether the time series is stationary in the mean and the variance. DiĀ®erencing, (non-seasonal and/or seasonal) will usually take care of any non-stationarity in the mean. Logarithmic or power transformations will often take care of non-stationary variance.

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Forecasting Methods And Applications

ISBN: 9780471532330

3rd Edition

Authors: Spyros G. Makridakis, Steven C. Wheelwright, Rob J Hyndman

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