14-07-2014, 09:53 AM
The Art of Forecasting
The Art of Forecasting.pptx (Size: 415.59 KB / Downloads: 13)
What is a Time Series
A series of observations, on a variable, recorded after successive intervals of time
Forecast based only on past values
Assumes that factors influencing past, present, & future will continue
Irregular Component
Erratic, unsystematic, ‘residual’ fluctuations
Due to random variation or unforeseen events
Union strike
War
Short duration & nonrepeating
Question:The seasonal indices of a company for four quarters of a year are 100,90,80,130. If the total sale in the first quarter is Rs 25000. How much worth of sale is reported during the whole year?