SAS: Using Differencing for ARIMA

Data Differencing is achieved by creating a new series which is D = Yt – Y[t-1]. Differencing aims at removing the non-stationarity in the time series, a pre-requisite for using ARIMA models against a time series. Here we explore the configuration of differencing and its impact on ACF and PACF: ARIMA configuration with D=0 Configuration[…]