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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Time Series Analysis
Sir I don’t have a kit question, but I was curious abou when we calculate seosonal variations, we get different seasonal variations for same quarter like(year1 Q1, year2 Q1 and year3 Q1), so I know we deal with that to get average seasonal variation for same quarters.
So when we are calculating that average we divide the same Q1 variations by 2 and not three even when it contains three years, so I wonder why? And how do we deal with it if the data is bigger like 5 years data.
Thank you.
If we have 3 years of seasonal variations then to get the average for each season we add up the total and divide by 3. This is exactly what I do in my free lecture.
Similar if there are 5 years of seasonal variations, then to get the average we add them up and divide by 5.
Thank you very much
You are welcome.