8 ARIMA models
ARIMA models provide another approach to time series forecasting. Exponential smoothing and ARIMA models are the two most widely-used approaches to time series forecasting, and provide complementary approaches to the problem. While exponential smoothing models were based on a description of trend and seasonality in the data, ARIMA models aim to describe the autocorrelations in the data.
Before we introduce ARIMA models, we need to first discuss the concept of stationarity and the technique of differencing time series.