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Exercise

Unrolling ARMA forecast

Now you will use the model that you trained in the previous exercise arma in order to forecast the absolute value of the Amazon stocks dataset. Remember that sometimes predicting the difference could be enough; will the stocks go up, or down; but sometimes the absolute value is key.

The results object from the model you trained in the last exercise is available in your environment as arma_results. The np.cumsum() function and the original DataFrame amazon are also available.

Instructions

100 XP
  • Use the .get_forecast() method of the arima_results object and select the predicted mean of the next 10 differences.
  • Use the np.cumsum() function to integrate your difference forecast.
  • Add the last value of the original DataFrame to make your forecast an absolute value.