Advertisements
Advertisements
Question
Moving averages are useful in identifying ______.
Options
Seasonal component
Irregular component
Trend component
Cyclical component
Advertisements
Solution
Moving averages are useful in identifying trend component.
Explanation:
Moving averages help even out changes in data, which makes it easier to see the long-term trend in a set of data over time. Short-term changes, like seasonal or irregular factors, are taken out, and the general direction of the data is shown. A lot of people use this way to predict the economy, study the stock market, and plan their businesses.
RELATED QUESTIONS
Use the method of least squares to fit a trend line to the data in Problem 1 above. Also, obtain the trend value for the year 1975.
Choose the correct alternative :
Which of the following can’t be a component of a time series?
An overall upward or downward pattern in an annual time series would be contained in which component of the times series?
Choose the correct alternative :
The following trend line equation was developed for annual sales from 1984 to 1990 with 1984 as base or zero year. Y = 500 + 60X (in 1000 Rs). The estimated sales for 1984 (in 1000 Rs) is:
Which component of time series refers to erratic time series movements that follow no recognizable or regular pattern?
Fill in the blank :
_______ component of time series is indicated by a smooth line.
_______ component of time series is indicated by periodic variation year after year.
_______ component of time series is indicated by a long wave spanning two or more years.
Fill in the blank :
_______ component of time series is indicated by up and down movements without any pattern.
State whether the following is True or False :
Seasonal variation can be observed over several years.
Cyclical variation can occur several times in a year.
______ components of time series is indicated by a smooth line
______ component of time series is indicated by periodic variation year after year.
State whether the following statement is True or False:
Seasonal variation can be observed over several years
Cyclical variation can occur several times in a year.
