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Seasonal variation -Time series

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Seasonal variation -Time series

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.
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  • August 7, 2020 at 4:30 pm #579543
    lokeshdh00
    Participant
    • Topics: 132
    • Replies: 129
    • ☆☆☆

    Sir, Will the sum of season variation always will be zero

    or

    the sum will be Zero only if a straight-line trend exists ?

    August 7, 2020 at 5:44 pm #579562
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54795
    • ☆☆☆☆☆

    If it is the additive model then the total should always be zero whether or not the trend is a straight line. (It won’t be exactly zero for the reasons I explain my free lectures).

    If it is the multiplicative model then the total should be 400 (again as I explain in the lecture) 🙂

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