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Time series

Forums › FIA Forums › MA2 Managing Costs and Finance Forums › Time series

  • This topic has 2 replies, 2 voices, and was last updated 3 years ago by James124.
Viewing 3 posts - 1 through 3 (of 3 total)
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  • August 10, 2021 at 3:20 am #630953
    James124
    Participant
    • Topics: 166
    • Replies: 138
    • ☆☆☆

    What is difference between linear and non linear time series

    August 10, 2021 at 5:34 am #630960
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10594
    • ☆☆☆☆☆

    These terms relate to the trend. Imagine no seasonal variations.

    A linear time series has equal increases for every unit of time. So sales for each quarter might go: 1,000, 1,100, 1,200, 1,300 etc. Each quarter increases by 100 and if you plotted these sales on a graph you would get a straight line ie linear.

    A non- linear time series has increments which increase (or decrease) Each time period. For example, of sales increase by 10% each quarter you would get: 1,000, 1,100, 1,210, 1,330 etc. Plotting this on a graph would produce a curved line, becoming more and more steep.

    August 10, 2021 at 10:20 am #631003
    James124
    Participant
    • Topics: 166
    • Replies: 138
    • ☆☆☆

    Gracious.

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  • The topic ‘Time series’ is closed to new replies.

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