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In Business / College | 2025-07-05

Why is it advisable to remove seasonality from data in time-series analysis?

A. Seasonality makes the data more interesting.
B. Seasonality can lead to recurring patterns that may not be well-explained by other factors in the model.
C. Seasonality helps in creating normalized values.
D. Seasonality ensures the model fits well.

Asked by gagejun187

Answer (1)

Removing seasonality from time-series data enhances model accuracy and interpretability by eliminating obscuring recurrent patterns. It also facilitates normalization of data and improves model fitting, leading to more reliable forecasts. This allows analysts to better understand underlying trends in the data. ;

Answered by GinnyAnswer | 2025-07-05