Week 3: Time series decomposition
What you will learn this week
- Transforming data to remove some sources of variation
- Decomposing a time series into trend-cycle, seasonal and remainder components
- Seasonal adjustment
Pre-class activities
Read Chapter 3 of the textbook and watch all embedded videos
Slides for seminar
Workshop activities
Seminar Code
Tutorial exercises
NoteTutorial Learning Objectives
- Visualise and assess time series transformations.
- Create appropriate graphs for multiple time series and apply transformations when needed.
- Evaluate the usefulness Box–Cox transformations.
- Able to explain when and why a Box–Cox transformation is or is not helpful for a given dataset.
- Apply time series decomposition techniques.
- Able to decompose a time series into trend, seasonal, and remainder components using STL decomposition and interpret the results.
Complete Exercise 2, 3, 10 from Section 3.7 of the book.