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State whether the following statement is True or False: The secular trend component of time series represents irregular variations - Mathematics and Statistics

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Question

State whether the following statement is True or False:

The secular trend component of time series represents irregular variations

Options

  • True

  • False

MCQ
True or False
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Solution

False

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Measurement of Secular Trend
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Chapter 2.4: Time Series - Q.3

RELATED QUESTIONS

Obtain the trend line for the above data using 5 yearly moving averages.


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The complicated but efficient method of measuring trend of time series is _______.


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State whether the following is True or False :

All the three methods of measuring trend will always give the same results.


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Year 1974 1975 1976 1977 1978 1979 1980 1981 1982
Production 0 4 9 9 8 5 4 8 10

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Year 1971 1972 1973 1974 1975 1976
Production 1 0 1 2 3 2
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Production 3 6 5 1 4 10

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Following table shows the amount of sugar production (in lac tons) for the years 1971 to 1982

Year 1971 1972 1973 1974 1975 1976
Production 1 0 1 2 3 2
Year 1977 1978 1979 1980 1981 1982
Production 4 6 5 1 4 10

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Obtain trend values for data, using 3-yearly moving averages
Solution:

Year IMR 3 yearly
moving total
3-yearly moving
average

(trend value)
1980 10
1985 7 `square` 7.33
1990 5 16 `square`
1995 4 12 4
2000 3 8 `square`
2005 1 `square` 1.33
2010 0

Complete the table using 4 yearly moving average method.

Year Production 4 yearly
moving
total
4 yearly
centered
total
4 yearly centered
moving average
(trend values)
2006 19  
    `square`    
2007 20   `square`
    72    
2008 17   142 17.75
    70    
2009 16   `square` 17
    `square`    
2010 17   133 `square`
    67    
2011 16   `square` `square`
    `square`    
2012 18   140 17.5
    72    
2013 17   147 18.375
    75    
2014 21  
       
2015 19  

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Year 2000 2001 2002 2003 2004
Production
xi
10 15 20 25 30
Year 2005 2006 2007 2008 2009
Production
xi
35 40 45 50 55

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Year Production Year Production
1931 1 1937 8
1932 0 1938 6
1933 1 1939 5
1934 2 1940 1
1935 3 1941 4
1936 2    

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Years 1966 1967 1968 1969 1970
Gross Capital information 20 25 25 30 35
Years 1971 1972 1973 1974 1975
Gross Capital information 30 45 40 55 65

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Years 1976 1977 1978 1979
No. of subscribers
(in millions)
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No. of subscribers
(in millions)
19 18 20 23

Fit a trend line by graphical method.


Fit a trend line to the following data by the method of least square :

Year 1980 1985 1990 1995 2000 2005 2010
IMR 10 7 5 4 3 1 0

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