ts-decomposition.R
Decomposition methods allow us to break time series into their components
- compare the trend-cycle component to the full data
- STL Decomposition components
- seasonally-adjusted series
- Moving Averages
Classical time series decomposition uses moving averages to deconstruct a time series into trend, season, and remainder components
- Step 1 - calculate the trend component with an MA
- Step 2 - deduct the trend component from the time series (de-trend)
- Step 3 - calculate the average of the de-trended series for each season
- Step 4 - deduct the trend and season components from the time series
