AI engineering glossary · Time series recsys
What is multiplicative decomposition?
Multiplicative decomposition: Splitting a series into trend, seasonal and remainder parts that are multiplied: y = trend x seasonal x remainder. It fits when seasonal swings grow in proportion to the level, as often happens with sales or passenger counts.
Multiplicative decomposition: an example
December sales that are always 30 percent above the yearly average, whether that average is Rs 10 lakh or Rs 20 lakh.
Related terms
- Additive decomposition
- STL decomposition
- Log transformation
- Seasonality
More Time series recsys terms
- N-BEATS
- Naive forecast
- Novelty
- Pairwise ranking
- Partial autocorrelation function
- PatchTST
- Pointwise ranking
- Popularity bias
Where you learn it
Multiplicative decomposition is part of the AI Engineering Program, which teaches it with notes, a hands-on lab and an exam. The first lesson is free.