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Q.What is meant by analysis of time-series?

Gujarat GsebGujarat Board (GSEB) HSC Commerce Board 2020Subjective· 1mImportance★★★★★
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It is the decomposition of an observed time series into its components (trend, seasonal, cyclical, irregular) so that each can be measured and interpreted.

A time series is a set of values of a variable recorded over successive time periods. The observed values are the combined effect of several forces. Analysis of a time series means identifying and isolating these forces — its components:

  1. Secular trend — the long-term general movement.
  2. Seasonal variation — regular short-term (within-a-year) fluctuations.
  3. Cyclical variation — medium-term ups and downs (business cycles).
  4. Irregular / random variation — unpredictable, accidental fluctuations. …

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