Week 13 Wednesday – Making the Time Series Stationary by implementing Differencing Technique

Moving forward in analysis, after performing the transformation and used the differencing technique by using the lags or shit to make the time series stationary. Below the first plot shows the original time series data to get the plot like that firstly, I differenced the data with a lag of 1 but I didn’t achieve the result. After that I performed the task again by shifting it with a 1 lag more and got the result at the lag of 2 where one can see the below graph which show the final result and the outcome is time series become stationary as per the ADF test. The statistics also defined the stationarity of the time series model and the p-value which we got is much lower than the optimal value which is 0.05.

The below plot is the original time series:

The below plot is the differenced dataset:

This is how I have performed the analysis to make the time series stationary and implemented the differencing technique to obatin.

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