How did you handle seasonality and external influences in time series?
sobes.tech AI
Answer from AI
To handle seasonality and external influences in time series, the following approaches are usually applied:
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Decomposition of the time series — splitting the series into trend, seasonality, and residuals (for example, using the STL method or classical additive/multiplicative models).
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Using moving averages for smoothing and identifying seasonal patterns.
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Models with seasonal components — for example, SARIMA, which directly account for seasonality.
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Including external regressors (exogenous variables) — if external factors are known (holidays, weather, marketing campaigns), they can be added to the model to improve forecasts.
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Analysis and adjustment of outliers, which may be caused by external influences.
Example: if analyzing sales, one can identify seasonality by months, consider holidays as external variables, and build a SARIMAX model for forecasting.