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Exercise

Getting "Warmed" Up: Look at Autocorrelations

Since the temperature series, temp_NY, is a random walk with drift, take first differences to make it stationary. Then compute the sample ACF and PACF. This will provide some guidance on the order of the model.

Instructions
100 XP
  • Import the modules for plotting the sample ACF and PACF
  • Take first differences of the DataFrame temp_NY using the pandas method .diff()
  • Create two subplots for plotting the ACF and PACF
    • Plot the sample ACF of the differenced series
    • Plot the sample PACF of the differenced series
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