Statistical Techniques

Question 1

What is the average annual change formula?

Answer 1

Last years figure - first years figure / number of years - 1

Question 2

What is an individual and dependant variable?

Answer 2

The measurement which is at a fixed individual
The figure which is dependant on the independent variable

Question 3

Whats the formula which is able to replicate a trend?

Answer 3

Y = mx + c
Y is dependant variable - total cost
X is the independent variable
M is the variable element
C is the fixed element

Question 4

What are moving averages?

Answer 4

Term used for a series of averages calculated from a stream of data, each subsequent average moves along by one

eg: 1st average will be based off - 1, 2, 3
2nd average will be based off - 2, 4, 5

Question 5

What is the formula for seasonal variations?

Answer 5

Actual = Trend + Seasonal Variations

Question 6

What are the four main factors which can influence data generated over a period of time?

Answer 6

The underlying trend - trend generally moving in one direction over a long period of time
Long-term cycles - Slow moving variations caused by social trends and economic cycles
Seasonal variations
Random Variations