Machine Learning Quick Reference

Detection of white noise in a series

We can detect white noise by using the following tools:

• Line plot: Once we have a line plot, we can have an idea of whether the series has a constant mean and variance
• Autocorrelation plot: Having a correlation plot can give us an inkling as to whether there is an association among lagged variables
• Summary: Checking the mean and variance of the series against the mean and variance of meaningful contiguous blocks of values in the series

Let's do this in Python:

1. First, we will import all the required libraries as follows:

from random import gaussfrom random import seedfrom pandas import Seriesfrom pandas.tools.plotting import autocorrelation_plotfrom matplotlib import pyplot

2. Next, we will set up the ...