voke ssgno - COMPONENTS OF TIME SERIES Any time series can...

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COMPONENTS OF TIME SERIES Any time series can contain some or all of the following component: 1. Secular trend (T) 2. Cyclical(C) 3. Seasonal trend (S) 4. Irregular fluctuations (I) This component may be combined in different ways. It is usually assumed that they are multiplied or added i.e.. Yt =T*C*S*I Yt = T+C+S+I To correct for to the trend in the first case one divides the first expression by the trend (T). In the second case it is subtracted Seasonal Trend: These are short term movements occurring in a data due to seasonal factors. The short term is generally considered as a period in which changes occur in a time series with variations in weather or festivities. For example, it is commonly observed that the consumption of ice-cream during summer us generally high and hence sales of an ice-cream dealer would be higher in some months of the year while relatively lower during winter months. Employment, output, export etc.
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