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Question
Choose the correct alternative :
Time-series analysis is based on the assumption that _______.
Options
random error terms are normally distributed.
the variable to be forecast and other independent variables are correlated.
past patterns in the variable to be forecast will continue unchanged into the future.
the data do not exhibit a trend.
Solution
Time-series analysis is based on the assumption that past patterns in the variable to be forecast will continue unchanged into the future.
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The following data gives the production of bleaching powder (in '000 tons) for the years 1962 to 1972.
| Year | 1962 | 1963 | 1964 | 1965 | 1966 | 1967 | 1968 | 1969 | 1970 | 1971 | 1972 |
| Production | 0 | 0 | 1 | 1 | 4 | 2 | 4 | 9 | 7 | 10 | 8 |
Fit a trend line by graphical method to the above data.
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| Year | 1976 | 1977 | 1978 | 1979 | 1980 | 1981 | 1982 | 1983 | 1984 | 1985 |
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Fit a trend line to the above data by graphical method.
Choose the correct alternative :
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Fill in the blank :
The graph of time series clearly shows _______of it is monotone.
