A Practical Guide to ARIMA Models using PyCaret — Part 3

Understanding the Difference Term

Nikhil Gupta
Towards Data Science
6 min readNov 26, 2021

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Photo by Cedrik Wesche on Unsplash

📚 Introduction

In the previous article in this series, we saw the impact of the trend term on the output of an ARIMA model. This article will look at the “difference” term “d” and see how this is modeled and what it represents.

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