Second Order Differencing
Posted: Fri Apr 14, 2017 11:18 am
Hello,
In order to make my data stationary, I had to take the second difference of the natural log of my data. Ex: logy=dlog(y,2).
I used this transformed data to produce a forecast and get values in those terms. I wish to compare my forecasted values to the original values for y in my dataset, so my question is how do I reverse the second order differencing in order to get my forecasted values back into the same terms as my actual values?
Any help would be appreciated.
Thank you!
In order to make my data stationary, I had to take the second difference of the natural log of my data. Ex: logy=dlog(y,2).
I used this transformed data to produce a forecast and get values in those terms. I wish to compare my forecasted values to the original values for y in my dataset, so my question is how do I reverse the second order differencing in order to get my forecasted values back into the same terms as my actual values?
Any help would be appreciated.
Thank you!