Tutorial learning objectives - Week 4

By the end of this tutorial, you should be able to:

• Explain the purpose of time series transformations, including logarithmic and Box-Cox transformations, and describe how these help stabilize variance and convert multiplicative series to additive form.

• Interpret decomposition plots by analyzing trend, seasonal, and remainder components, and explain how these components combine to reconstruct the original time series. Pay attention to the grey scale on the graph.

• Apply STL decomposition to transformed time series data using R, and adjust key parameters such as smoothing windows and robustness settings.