Frequently Asked Questions

Why Do We Need Time Series To Be Stationary?

The time series data needs to be stationary because:

  • The time series principles are only applicable to stationary data.
  • The statistical models cannot forecast on non-stationary data. They can predict effectively only on stationary data.

A series is said to be stationary if its statistical properties like mean, variance and covariance don’t vary with time.

 

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