Page 170 - Data Science Algorithms in a Week
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Time Series Analysis
Analysis:
To be able to analyze this, we will first graph the data so that we can notice patterns and
analyze them.
From the graph and the table, we notice that, in the long term, the sales increase linearly.
This is the trend. However, we can also see that the sales for December tend to be higher
than for the other months. Thus, we have reason to believe that sales are also influenced by
the month.
How could we predict the monthly sales for the following years? First, we determine the
exact long-term trend of the data. Then, we would like to analyze the change across the
months.
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