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Question
What is the need for studying time series?
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Solution
We should study time series for the following reasons:
1. It helps in the analysis of past behaviour.
2. It helps in forecasting and for future plans.
3. It helps in the evaluation of current achievements.
4. It helps in making comparative studies between one time period and others.
Therefore time series helps us to study and analyze the time-related data which involves in business fields, economics, industries, etc.
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RELATED QUESTIONS
Define Time series
Define secular trend
Define seasonal index
State the two normal equations used in fitting a straight line
State the different methods of measuring trend
The following table gives the number of small-scale units registered with the Directorate of Industries between 1985 and 1991. Show the growth on a trend line by the free hand method.
| Year | No. of units (in '000) |
| 195 | 10 |
| 986 | 22 |
| 1987 | 36 |
| 198 | 62 |
| 1989 | 55 |
| 1990 | 0 |
| 1991 | 34 |
| 1992 | 50 |
Use the method of monthly averages to find the monthly indices for the following data of production of a commodity for the years 2002, 2003 and 2004
| 2002 | 2003 | 2004 |
| 15 | 20 | 18 |
| 18 | 18 | 25 |
| 17 | 16 | 21 |
| 19 | 13 | 11 |
| 16 | 12 | 14 |
| 20 | 15 | 16 |
| 21 | 22 | 19 |
| 18 | 16 | 20 |
| 17 | 18 | 1 |
| 15 | 20 | 16 |
| 14 | 17 | 18 |
| 18 | 15 | 20 |
Calculate the seasonal indices from the following data using the average method:
| Year | I Quarter | II Quarter | III Quarter | IV Quarter |
| 2008 | 72 | 68 | 62 | 76 |
| 2009 | 78 | 74 | 78 | 72 |
| 2010 | 74 | 70 | 72 | 76 |
| 2011 | 76 | 74 | 74 | 72 |
| 2012 | 72 | 72 | 76 | 68 |
Choose the correct alternative:
Factors responsible for seasonal variations are
Choose the correct alternative:
The value of ‘b’ in the trend line y = a + bx is
