When decomposing time series data, which component is primarily targeted to be removed to focus on the longer-term trend?
In time series decomposition, seasonality is often removed to observe the underlying trend, as it allows analysts to analyze the data without the cyclical variations. By isolating seasonality, we can better understand the long-term trend, which reflects the general direction of the data over time. Decomposition methods, like seasonal adjustment, are crucial when the goal is to highlight the trend in time series data for clearer forecasting. Option A (Noise) is incorrect because noise is random and doesn’t follow a regular pattern; it’s often filtered out rather than decomposed. Option C (Irregular Component) is incorrect as irregular components are random and not part of systematic decomposition. Option D (Trend) is incorrect because the trend is typically retained when seasonality is removed. Option E (Stationarity) is incorrect because stationarity is a characteristic of the series rather than a decomposable component.
Under Pradhan Mantri Gram Sadak Yojana, Union Government bears ____% of the project cost in respect of projects sanctioned in North-Eastern and Himalaya...
India's company HealthKart’s MuscleBlaze signs whom as brand ambassador?
Who unveiled the mascot 'Juhi' for the Jharkhand Women’s Asian Champions Trophy Ranchi 2023, and what is the inspiration behind the mascot?
The 40th edition of "Hunar Haat", a platform to preserve, protect and promote local artisans and craftsmen, was inaugurated by the Union minister Anurag...
Recently the central government launches 3 schemes to strengthen MSMEs in pharmaceutical sector, who will be the project management consultant for impl...
How much of India’s total gold reserve is now held domestically, as per RBI’s recent data?
Badri Narayan received the prestigious literary award Sahitya Akademi Award, 2022 for ?
Consider the following statements:
I. India's first-ever National Air Sports Policy-2022 has been launched by Sports Authority of India.
<...Deanna Syme Tewari, who passed away recently, was known for her achievements in which field?
RBI has extended the deadline for non-banking financial companies (NBFCs) to comply with new Non-Performing Assets (NPAs) classification norms to Septem...