Hi John
In this section of chapter 12 you explain that a method of forecasting involves 'forecasting the trend'. I understand the trend line in the example are the centered moving averages, ie, 86, 88.25,90.63 etc. You describe a method at the end where you "forecast the trend and add the average season variation". I understand the seasonal variation part, but when you say forecast the trend do you mean extrapolate the trend figures into 2003 to come up with a figure for say quarter 2 of 2003 or any given period in the future. How is this done, using regression analysis?
Cheers
Hugh
Ask the Tutor ACCA PM
Time series analysis
11y ago#1You could either use regression analysis or just the high/low approach
Thanks. I am studying regression analysis and high low now, I suppose I did it in reverse order
11y ago#3No problem :-)
Do appreciate that (as it says in the Lecture Notes) you will no longer be asked for calculations involving time series or regression, but you can be expected to know what the techniques are (as assumed knowledge from Paper F2).
Sign into reply to this topic.