time series data Flashcards
1
Q
what does stochastic mean ?
A
it means that when analysing time series data we cannot go back in time and re do the experiment
2
Q
at each period what is the probability that Xt moves up or down ?
A
Pr ( up ) = p
Pr ( down ) = 1 - p
3
Q
how do E(Xt), V(Xt) and correlation change over time ?
A
they do not change
4
Q
how do you smooth a time series ?
A
you add up how ever many months you are smoothing by and divide it by the number you used.
5
Q
how do you calculate these growth factors
a. year on year
b. overall
A
a. Xt / Xt-1
b. Xt / X1(end)
6
Q
how do you calculate these growth rates
a. year on year
b. overall
A
a. (Xt / Xt-1) -1
b. (Xt / X1(end)) -1
7
Q
how do you find the geometric mean ?
A
product of all the elements ^ 1/the number of elements
