Electronics shop's sales – analyzing seasonality
We have data for sales in thousands of USD for a small electronics shop, by month, for the years 2010 to 2017. We would like to predict sales for each month of 2018:
Month/Year | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 |
January | 10.5 | 11.9 | 13.2 | 14.6 | 15.1 | 16.5 | 18.9 | 20 | |
February | 11.9 | 12.6 | 14.4 | 15.4 | 17.4 | 17.9 | 19.5 | 20.8 | |
March | 13.4 | 13.5 | 16.1 | 16.2 | 17.2 | 19.6 | 19.8 | 22.1 | |
April | 12.7 | 13.6 | 14.9 | 17.8 | 17.8 | 20.2 | 19.7 | 20.9 | |
May | 13.9 | 14.6 | 15.7 | 17.8 | 18.6 | 19.1 | 20.8 | 21.5 | |
June | 14 | 14.4 | 15.3 | 16.1 | 18.9 | 19.7 | 21.1 | 22.1 | |
July | 13.5 | 15.7 | 16.8 | 17.4 | 18.3 | 19.7 | 21 | 22.6 | |
August | 14.5 | 14 | 15.7 | 17 | 17.9 | 20.5 | 21 | 22.7 | |
September | 14.3 | 15.5 | 16.8 | 17.2 | 19.2 | 20.3 | 20.6 | 21.9 | |
October | 14.9 | 15.8 | 16.3 | 17.9 | 18.8 | 20.3 | 21.4 | 22.9 | |
November | 16.9 | 16.5 | 18.7 | 20.5 | 20.4 | 22.4 | 23.7 | 24 | |
December | 17.4 | 20.1 | 19.7 | 22.5 | 23 | 23.8 | 24.6 | 26.6 |
The data in the table is sales in thousands of USD
Analysis
To be able to analyze this, we will first graph the data so that we can observe patterns and analyze them:
From the graph and table, we notice that, in the long term, sales increase linearly. This is the trend. However, we can also see that the...