hey, I have a dataset that contains hourly wind speeds. When I plotted my original acf, it showed seasonality at every 24 lags so I applied a difference of 24 to remove seasonality and another difference to remove trends. The diagrams shows the resulting acf and pacf, how do I determine the order of the arima model. Also I am seeing that at every 24 lags in the pacf there is a spike and decaying slowly, is this suppose to happen or does my dataset still contains stationarity?
Best Answer
A good starting point can be the forecast package of prof Hyndman in R. The
auto.arima()function can give you a suitable model and this can be a good starting point of your investigation. I have learned a lot from his open book https://www.otexts.org/fpp/