- 4 Marks
Question
State the four (4) factors which may be present in a Time Series Data. (4 Marks)
Answer
The four factors present in a Time Series Data are:
- Trend Factors
These represent the long-term movement in a time series, indicating the overall direction over time (upward or downward). - Seasonal Factors
These are short-term variations in a time series that repeat at regular intervals, typically within a year (e.g., monthly or quarterly fluctuations). - Cyclical Factors
These represent long-term oscillations around the trend line due to economic cycles, often lasting more than a year. - Random Factors/Irregular Factors
These represent random, unpredictable variations in a time series caused by unforeseen events (e.g., natural disasters or sudden market shocks).
- Tags: Cyclical, Factors, Forecasting, Random, Seasonal, Time series, Trend
- Level: Level 1
- Topic: Forecasting
- Series: NOV 2015
- Uploader: Kwame Aikins