Overview
Seasonality refers to periodic fluctuations in time series data that happen at regular intervals, such as daily, weekly, or monthly. These patterns are often tied to the calendar or weather.
Examples
- Increased retail sales during the holiday season.
- Higher electricity consumption during summer (due to air conditioning).
- Increased travel during summer vacations.
Handling Seasonality
Analysts often 'deseasonalize' data to see the underlying trend without the influence of seasonal effects.