--%>

Components of time series

Name and elaborate the four components of time series in brief.

E

Expert

Verified

TREND (SECULAR TREND):

Time series data would normally show an upward or downward trend over a period of time. A trend is a longterm movement in time series. They are generally gradual increases or decreases over a period of time and an example of an upward trend would be price increases over the years, and a downward trend would be decrease in sales over the years. The increase or decrease is fairly gradual and thus a smooth curve or straight line curve generally depicts the trend.

CYCLICAL VARIATIONS (C):

These variations are not regular as seasonal variation, they are medium to long term deviations from the trend. Cyclical variations are recurrent upward or downward movements in a time series but the period of cycle is greater than a year. There are different cycles of varying in length and size. A business cycle is one of the most common forms and passes through stages.

SEASONAL VARIATIONS (S):

Seasonal variations are fluctuations that are repeated periodically, they are short term fluctuations and occur periodically within a year. Major factors causing this repetition are weather conditions and customs of people.

RANDOM (IRREGULAR) VARIATION (R):

These are fluctuations in time series that are short in duration, unpredictable occurrences that are erratic in nature and follow no regular pattern. They result due to unforeseen events such as droughts, strikes etc.

   Related Questions in Advanced Statistics

  • Q : Problem on utility funtion probability

    Suppose that your utility, U, is a function only of wealth, Y, and that U(Y) is as drawn below. In this graph, note that U(Y) increases linearly between points a and b.  Suppose further that you do not know whether or not you

  • Q : Probability of winning game Monte Carlo

    Monte Carlo Simulation for Determining Probabilities 1. Determining the probability of winning at the game of craps is difficult to solve analytically. We will assume you are playing the `Pass Line.'  So here is how the game is played: The shooter rolls a pair of

  • Q : Binomial distribution 1) A Discrete

    1) A Discrete random variable can be described as Binomial distribution if is satisfies four conditions, Briefly discuss each of these conditions2) A student does not study for a multiple choice examination and decides to guess the correct answers, If the

  • Q : Probability on expected number of days

    It doesn't rain often in Tucson. Yet, when it does, I want to be prepared. I have 2 umbrellas at home and 1 umbrella in my office. Before I leave my house, I check if it is raining. If it is, I take one of the umbrellas with me to work, where I would leave it. When I

  • Q : What is your statistical decision

    Question 1 Do parents with more children travel more than parents of small families? To find out, a survey was done of a large number of adults. Respondents were asked how many children they had and how many times

  • Q : Random variables Random variables with

    Random variables with zero correlation are not necessarily independent. Give a simple example.    

  • Q : Components of time series Name and

    Name and elaborate the four components of time series in brief.

  • Q : Probability of Rolling die problem A

    A fair die is rolled (independently) 12 times. (a) Let X denote the total number of 1’s in 12 rolls. Find the expected value and variance of X. (b) Determine the probability of obtaining e

  • Q : Describe what happens to the confidence

     A nurse practitioner working in a dermatology clinic is studying the efficacy of tretinoin in treating women's post partum abdominal stretch marks.  From a sample of 15 women, the mean reduction of stretch mark score is -0.33 with a sample standard deviation of 2.46.  Describe wha

  • Q : Statistics A nurse practitioner working

    A nurse practitioner working in a dermatology clinic is studying the efficacy of tretinoin in treating women’s post partum abdominal stretch marks. From a sample of 15 women, the mean reduction of stretch mark score is -0.33 with a sample standard deviation of 2.46. Describe what happens to the c