Question

Describe what is meant by the process of decomposition of a time series.

Answer 1

We can say that decomposition of time series can be described as the process which we use in order to decompose/separate a time series into the components based on the factors of seasonality and trend. In simpler terms, we can say that it means we utilize the time series data and represent it as different underlying components in order to better analyze and utilize the given data in order to create much more adjusted and accurate forecasting process.

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