What Does ARIMA Stand For?

ARIMA stands for Auto Regressive Integrated Moving Average Model

ARIMA, or Auto Regressive Integrated Moving Average Model, is a statistical analysis model used for forecasting time series data. It combines three key components: autoregression, which uses the relationship between an observation and a number of lagged observations; integration, which involves differencing the data to achieve stationarity; and moving average, which models the relationship between an observation and a residual error from a moving average model applied to lagged observations. ARIMA is widely utilized in various fields such as economics, finance, and environmental studies for predicting future values based on past data trends.