trends with time series analysis

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi can someone please help I have been off ill for a while from AAT and I am now trying to catch up before the exams :x Can you please explain how I work out the approximate increment of a trend for the time series analysis?

Much love and thanks xx

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:trends with time series analysis

    If there is a reasonably steady change over time you can apply a process very similar to Hi Lo for semi variable costs.

    Say you have time periods 31 to 40 and a sales volume for each period which starts at 32000 in period 31 and rises to 37,000 in period 40

    This shows an average increase of 500 units per period

    Work it out by saying difference in sales volume divided by difference in the time periods. (5,000 units divided by 10 time periods)

    So an extrapolation of this would be to add another 500 units per period.

    sandy.hood@chichester.ac.uk

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