Time series Flashcards
1
Q
What are seasonal fluctuations?
A
Regular fluctuations based on the seasons.
2
Q
What are cyclical fluctuations?
A
Regular fluctuations that are not based on the seasons.
3
Q
What are random fluctuations?
A
When there is no pattern.
4
Q
What is the formula for seasonal effect?
A
seasonal effect = observed value - trend value.
5
Q
How can the mean seasonal effect be found?
A
Σseasonal effect / n
6
Q
How can a prediction be made from a trend line?
A
- Extend the trend line.
2. Adjust up or down, using the mean seasonal effect for that season.
