Question

Discuss the use and issues with ARIMA models.

Answer 1

ARIMA(Auto Regressive Integrated Moving Average).Forecasting of time series as well as analyzing of time series are done by using ARIMA model.ARIMA model is used for both analyzing and forecasting series of time.Time series datas are used by the ARIMA model inorder to understand the data more clearly and according to that data they are able to predict the patterns of trends in the future. Main issue faced by ARIMA is that sometimes they are weak in long term forecasting. They also face a lot of problems in estimating the parameters. Sometimes the predictions made by them may not be correct.