SARIMA (Seasonal AutoRegressive Integrated Moving Average) extends ARIMA to handle seasonal patterns in time series data. While ARIMA focuses on modeling the overall trend and short-term relationships, SARIMA explicitly accounts for repeating patterns that occur at regular intervals, such as daily, monthly, or yearly cycles. The key difference is the addition of seasonal parameters to the model. SARIMA includes P, D, Q, and m to represent the seasonal counterpart of ARIMA’s p, d, and q parameters and the periodicity of the seasonality (m). For example, a SARIMA model for monthly sales data might account for patterns repeating every 12 months. By addressing seasonality directly, SARIMA avoids the need for preprocessing steps like seasonal differencing, which are often required in ARIMA. This makes SARIMA more suitable for datasets with clear seasonal components, such as retail sales or energy consumption. However, like ARIMA, SARIMA is limited to linear relationships and can become computationally intensive with higher seasonal orders.
What is SARIMA, and how is it different from ARIMA?
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