Am I over differencing the data?

If my data is stationary at the 5% level but non-stationary at the 1% level, should I difference it again (I have already differenced it once) to make it appropriate for ARMA modelling?

What test are you using?

Augmented Dickey-Fuller test

The null of the ADF is that the series is nonstationary. So your evidence is that the data is stationary, but the evidence is not extremely strong. Probably don't difference again.

This topic was automatically closed 90 days after the last reply. New replies are no longer allowed.

If you have a query related to it or one of the replies, start a new topic and refer back with a link.