Question: Q4. Explain the reasons to take the log differences rather than the differenced original series in modelling the stochastic term in the series. Q5. ARIMA

Q4. Explain the reasons to take the log differences rather than

Q4. Explain the reasons to take the log differences rather than the differenced original series in modelling the stochastic term in the series. Q5. ARIMA models include a parameter, d, that controls the number of times a time series is differenced before being modeled by an ARMA process. Why is differencing a time series sometimes necessary? Q6. Define weak stationarity. Why is stationarity a desirable property for a time series process

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