Question: When would you use differencing and when would you employ seasonal differencing?

When would you use differencing and when would you employ seasonal differencing?

Step by Step Solution

★★★★★

3.51 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Differencing is employed any time the data is nonstationary that is when the d... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

647-M-S-L-R (6257).docx

120 KBs Word File

Students Have Also Explored These Related Statistics Questions!

Q:

Use the state-level data on murder rates and executions in MURDER.RAW for the following exercise. (i) Consider the unobserved effects model where 6, simply denotes different year intercepts and a is...

Q:

Use the data in MATHPNL.RAW for this exercise. You will do a fixed effects version of the first differencing done in Computer Exercise C13.11. The model of interest is where the first available year...

Q:

Figure 10.14 contains ACF plots of 40 years of quarterly data, with all possible combinations of first-order seasonal and nonseasonal differencing. Which combination do you recommend in order to...

Q:

Figure 10.13 contains ACF plots of 40 years of quarterly data, with all possible combinations of first-order seasonal and nonseasonal differencing. Which combination do you recommend in order to...

Q:

Figure 10.15 contains ACF plots of 40 years of quarterly data, with all possible combinations of first-order seasonal and nonseasonal differencing. Which combination do you recommend in order to...

Q:

Analyze in R the deaths.txt dataset posted on Gaucho Space. The dataset is also available at https://datamarket.com/data/list/?q=provider: tsd1; search "accidental deaths". (a) Plot the time series...

Q:

. Which of the following time series is probably stationary?\" a] U.S. GDP since 1904]\" h] Enrolh'nent of students in ECDN 3951 across fall and spring semesters\" c) [1.5. ination rates since 1WD\"...

Q:

Please solve as much of this question as possible in R. However, if you are only allowed to answer four parts, please solve (b), (e), (f), and (g). Those are the ones I am struggling with the most....

Q:

11. Olive Garden restaurant has tracked the number of meals served at lunch over the last four weeks. Use the following information to determine the seasonal (daily) indices (average index) for...

Q:

/ . . . 7 5 . . . , . .................................................. : . ADOPTION OF INTERNET BANKING: AN EMPIRICAL STUDY IN SAUDI ARABIA/ Dubai The purpose of this study is to identify factors...

Q:

On January 1, 2011, Allied Robotics issued $500,000, 4%, five-year bonds at par. Interest is payable on January 1. Use the accounting equation to record the following: 1. The bond issue 2. The...

Q:

Why did Middleton go to the trouble of this appeal, knowing he was likely to lose?

Q:

What are the three sectors of industry?

Q:

By using Yahoo! Finance, Google Finance, or the company website, obtain the historical quarterly returns for Southwest Airlines (LUV) and Continental Airlines (CAL) for the last three years, and...

Q:

Is it possible to predict the annual number of business bankruptcies by the number of firm births (business starts) in the United States? The following data published by the U.S. Small Business...

Q:

It appears that over the past 45 years, the number of farms in the United States declined while the average size of farms increased. The following data provided by the U.S. Department of Agriculture...

Q:

Can the annual new orders for manufacturing in the United States be predicted by the raw steel production in the United States? Shown on the next page are the annual new orders for 10 years according...

Q:

Read the article from https://www.quora.com/What-is-the-difference-between-packet-firewall-stateful-firewall-and-application-firewall Explain the difference between packet firewall, stateful firewall...

Q:

I want to know what the margin of error is ? For b) Question 12 of 16 - /1 E Plastic Microfiber Pollution on Shorelines In a study, we see that plastic microparticles are contaminating the world's...

Q:

Commercial real estate Three multiple regressions, MODEL A, MODEL B, and MODEL C, were run on data from 52 commercial rental real estate properties in the San Fernando valley of Los Angeles. The...