Eliminate both trend and seasonality

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Reference no: EM13669456

Consider a monthly time series dataset for which we believe that the model Xt = (at + b)st + Zt is appropriate where st is a seasonal function i.e., st+d = st and Zt is white noise. What would be a way to difference the data in order to eliminate both trend and seasonality and why does it work?

Reference no: EM13669456

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Eliminate both trend and seasonality : Consider a monthly time series dataset for which we believe that the model Xt = (at + b)st + Zt is appropriate where st is a seasonal function i.e., st+d = st and Zt is white noise. What would be a way to difference the data in order to elimin..

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