Which of the following could be included in a time series based sales forecast?
(i) Trend
(ii) Seasonal Variation
(iii) Cyclical Variation
(iv) Random fluctuation
My answer; All options
Sir the correct answer was all three options except for Random fluctutation
Sir why is that correct answer like this??
Because I remember that the theory says that it includes 'Random Variables' in a time series analysis
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Time series
5y ago#1There will be random variations, but the question asks which could be included in a forecast and we cannot forecast random variations.
Oh ok so time series analysis records
Trend
Seasonal Variation
Cyclical variations
Random variations
On the otherhand it doesn't include random variations because it is irregular and is diffucult to predict right sir??
5y ago#3Random variations are not just difficult to predict - they are impossible to predict (because they occur at random) :-)
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