How do you use ARIMA model?

An ARIMA model is basically an ARMA model fitted on d-th order differenced time series such that the final differenced time series is stationary . A stationary time series is one whose statistical properties such as mean, variance, autocorrelation, etc. are all constant over time.

STEPS

Autoregressive Integrated Moving Average Model. An ARIMA model is a class of statistical models for analyzing and forecasting time series data . It explicitly caters to a suite of standard structures in time series data, and as such provides a simple yet powerful method for making skillful time series forecasts.9 Oca 2017

The ARIMA model is becoming a popular tool for data scientists to employ for forecasting future demand , such as sales forecasts, manufacturing plans or stock prices. In forecasting stock prices, for example, the model reflects the differences between the values in a series rather than measuring the actual values.