Fitting the AR and MA Models

AR_MA.py

# Loading the packages
import pandas as pd
from statsmodels.tsa.statespace.sarimax import SARIMAX

# Loading the data
data = pd.read_csv('https://raw.githubusercontent.com/jbrownlee/Datasets/master/airline-passengers.csv')

# Setting the month as index
data = data.set_index('Month')

# Plot the data
data.plot()

# Achieving stationarity:
data_log_transformation = np.log(data)
data_rolling_avg = data_log_transformation.rolling(window = 12).mean()
(data_log_transformation - data_rolling_avg).plot()