Question

This is identifying and separating time series data into components of demand?

Short answer

Decomposition identifies and separates time series data into components of demand.

Step-by-step solution

Definition of Decomposition

Decompositioncould be a forecasting technique that separates or decomposes historical data into different components and uses them to form a forecast that's more accurate than a simple line.

By forecasting each component separately before combining them, you'll assess the importance of everything and emphasize or discount them in line with changing market or economic conditions.

Explanation

Decomposition is the process that is used to identify and separate the time series data into components of demand.

Time series decomposition is the process of deconstructing a time series into the following demand components the trend, seasonal; residual this technique is most often wont to analyze time-series data. It’s used for forecasting. Modeling trend and seasonality at once is a too difficult task, so tackling components individually is also a more robust approach.