I have a dataset that contains annual expenditure data for only 5 years. Here is a sample of my data:
<code>Year Expenditure
2019 50000
2020 52000
2021 54000
2022 56000
2023 58000
</code>
<code>Year Expenditure
2019 50000
2020 52000
2021 54000
2022 56000
2023 58000
</code>
Year Expenditure
2019 50000
2020 52000
2021 54000
2022 56000
2023 58000
I need to forecast the expenditure on a monthly basis. However, I am facing challenges due to the limited amount of data. The current data is not enough to perform robust time series forecasting.
To overcome this limitation, I considered generating synthetic data. However, I encountered the following issues with synthetic data:
- The synthetic data tends to have a smoother or more linear trend compared to the original data.
- The original data exhibits its own unique trend and variability, which the synthetic data fails to capture adequately.
Given these challenges, I am seeking advice on the following points:
- Is it advisable to use synthetic data in this scenario?
- What are the best practices for generating synthetic data that accurately reflects the trends and variability of the original data?
- Should I proceed with forecasting using the limited 5 years of data instead of generating synthetic data? If so, what methods would be most suitable for handling such a small dataset?
Any insights or recommendations would be greatly appreciated.