Underlying trends Syllabus 2013

T1ger1973
T1ger1973 Registered Posts: 2
in AAT Level 4 (Level 8 in Scotland)
Hi everyone,

I am struggling to find an example of how to calculate underlying trends, this came up in my exam and I did not have a clue where to start. Can someone tell me if Trend and underlying Trend are the same thing? I would really appreciate you help on this one.

Comments

  • PeterC
    PeterC Registered, Tutor Posts: 247 Dedicated contributor 🦉
    They are pretty much the same. The underlying trend is the pattern which remains in a Time Series after removing variations, especially seasonal variation.
  • T1ger1973
    T1ger1973 Registered Posts: 2
    Hi Peter,

    Thank you for that, please can you give me a worked example so I know i'm working it out correctly?

    Kind regards,
    T1ger@1973
  • PeterC
    PeterC Registered, Tutor Posts: 247 Dedicated contributor 🦉
    There is an example calculation of trend on page 14 of the Time Series Workbook at meadowgatetraining.co.uk/sample-material/

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