# Questions and answers on ratio to moving average method seasonal index pdf

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Breaking News. Unit — 4: Time Series analysis:.

## Measuring the seasonality in tourism with the comparison of different methods

The ratio-to-moving-average method is one of the simplest of the commonly used devices for measuring seasonal variation which takes the trend into. For this purpose take 12 month moving average followed by a two-month moving average to recentre the trend values. These adjusted ratios will be the seasonal indices for various months. A seasonal index computed by the ratios-to-moving-average method ordinarily does not fluctuate so much as the index based on straight-line trends. This is because the month moving average follows the cyclical course of the actual data quite closely.

The analysis of time series means separating out different components which influences values of series. The variations in the time series can be divided into two parts: long term variations and short term variations. Long term variations can be divided into two parts: Trend or Secular Trend and Cyclical variations. Short term variations can be divided into two parts: Seasonal variations and Irregular Variations. The following methods serve as a tool for this analysis:. Methods for Measurement of Secular Trend i. Freehand curve Method Graphical Method.

Forecasting is the process of making predictions based on past and present data and most commonly by analysis of trends. A commonplace example might be estimation of some variable of interest at some specified future date. Prediction is a similar, but more general term. Both might refer to formal statistical methods employing time series , cross-sectional or longitudinal data, or alternatively to less formal judgmental methods. Usage can differ between areas of application: for example, in hydrology the terms "forecast" and "forecasting" are sometimes reserved for estimates of values at certain specific future times, while the term "prediction" is used for more general estimates, such as the number of times floods will occur over a long period. Risk and uncertainty are central to forecasting and prediction; it is generally considered good practice to indicate the degree of uncertainty attaching to forecasts. In any case, the data must be up to date in order for the forecast to be as accurate as possible.

## Samacheer Kalvi 12th Business Maths Solutions Chapter 9 Applied Statistics Additional Problems

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## Methods of Time Series

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The classical method of time series decomposition originated in the s and was widely used until the s. It still forms the basis of many time series decomposition methods, so it is important to understand how it works. The first step in a classical decomposition is to use a moving average method to estimate the trend-cycle, so we begin by discussing moving averages. Observations that are nearby in time are also likely to be close in value.

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