Overview for Box-Cox Transformation for Time Series

Use a Box-Cox transformation of a time series to try to make the variance of the series stationary. Stationary variance is a requirement for an ARIMA model. Use a time series plot to determine if the variance of a time series is stationary. If the time series has a pattern in the spread of the points, then the variance is not stationary.

Where to find this analysis

To perform a Box-Cox transformation on a time series, choose Stat > Time Series > Box-Cox Transformation.

When to use an additional analysis

An ARIMA analysis requires that the variance and the mean of the time series are both stationary. If a time series plot of the transformed series shows that the transformed series does not have a stationary mean, try Augmented Dickey-Fuller Test to see whether differencing the data makes the mean of the series stationary.