Definition
\(ARIMA(p,d,q)\) model is a non-seasonal forecasting model
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to incoroporate seasonality we need seasonal terms
- whose order is indicated by capital letters \((P,D,Q)\)
Seasonal ARMA model data shows seasonal pattern every \(s\) observations
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but after taking seasonal difference
- the data behaves like ARMA model (stationary)
Seasonal ARIMA model data shows seasonal pattern every \(s\) observations
-
but after taking seasonal difference
- the dat behaves like ARIMA model (non-stationary)