forecastit 8. data transformations
DESCRIPTION
This lesson presents the types of transformations which can be done and their purpose. Looking at the transformed data can provide insight, which otherwise could have been missed.TRANSCRIPT
Copyright 2010 DeepThought, Inc. 1
Data Transformation
Lesson #8
Data Transformation
Copyright 2010 DeepThought, Inc. 2
Data Transformation
Why Transform Data• Some methods can only be used when data does not show specific
qualities such as:– Trend– Stationary
• Looking at the data through a different prospective can provide different insight or better forecast
Copyright 2010 DeepThought, Inc. 3
Data Transformation
Types of Transformations• Change• Change from year age• Percent change• Percent change from year ago• Compounded annual rate of change• Continuously compounded rate of change• Continuously compounded annual rate of change• Natural log
Copyright 2010 DeepThought, Inc. 4
Data Transformation
Results Retransformation• Results statistics apply to transformed data model• Forecasts will also be in the transformed units• To get the forecast to be in original units, we retransform the
forecast back to into original units