A detailed analysis of four popular time series decomposition methods: Classical, X11, SEATS, and STL is provided in this study, with a focus on their applications, strengths, and limitations. Understanding seasonal patterns in time series data is an important aspect in several fields such as economics or environmental science. The R package seasonal was employed to conduct the decompositions on the official data of National Oceanic and Atmospheric Administration (NOAA) Climate Data from January 1980 till July 2024. It offers a detailed analysis of the performance of each method in isolating trends, seasonal components, and residuals. Findings reveal that although all methods can be used for time series data decomposition, their success is influenced by data nature and particular analytical tasks. For instance, SEATS is robust enough to handle irregularities while Classical decomposition wins when it comes to simple understanding. Similarly, X11 methods were known for lack of flexibility as well as recurring seasonal changes sensitivity, where STL is particularly efficient for varying seasonal patterns datasets with nonlinearity trends. From the findings, it can be concluded that it is important to choose the appropriate decomposition method to increase reliability and make appropriate adjustments in the forecasts incorporating time series data.
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