Seasonal Variation

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi<BR><BR>Can anyone help me get my head round seasonal variation our college tutor gave us the formula<BR><BR>Y=T+S<BR><BR>She didn't tell me what the letter stand for she said just use the equation to work out the numbers but how can I work it out if I don't know what they stand for. I need to know and understand what I'm trying to do so that it sinks in.

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Seasonal Variation

    Y is the actual data<BR>T is the trend<BR>S is the seasonal variation<BR><BR>This simply means that if you deduct the trend from the original data each period, what you are left with is the seasonal variation.<BR><BR>E.g.<BR><BR>Period 1 Actual data = 300 Trend = 250<BR>Period 2 Actual data = 260 Trend = 270<BR><BR>The seasonal variation in Period 1 = 50 (Y = T + S becomes 300 = 250 + ?)<BR>In period 2 the seasonal variation is -10<BR><BR>Of course, the hard part is calculating the trend (using either moving averages or, better, regression analysis)<BR><BR>I do hope that you are studying at Technician level, because this is a formula too far at Intermediate.<BR><BR>Graham
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Seasonal Variation

    Thanks for that Graham<BR><BR>I am studying technician level but I missed a term at college due to illness and the tutor is not very helpful.<BR>

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