1. Time Series Analysis and Index Numbers Introduction to Business Statistics, 5e Kvanli/Guynes/Pavur (c)2000 South-Western College Publishing

2. Times Series Time series represents a variable observed across time. Introduction to Business Statistics, 5e Kvanli/Guynes/Pavur (c)2000 South-Western College Publishing

3. Components of a Time Series Trend (TR) Seasonal variation (S) Cyclical variation (C) Irregular activity (I) Introduction to Business Statistics, 5e Kvanli/Guynes/Pavur (c)2000 South-Western College Publishing

4. Trend Trend is a steady increase or decrease in the time series. This long-term growth or decay pattern can take a variety of shapes. If the rate of change in Y from one time period to the next is relatively constant, the trend is a linear trend. Introduction to Business Statistics, 5e Kvanli/Guynes/Pavur (c)2000 South-Western College Publishing

5. Trend Introduction to Business Statistics, 5e Kvanli/Guynes/Pavur (c)2000 South-Western College Publishing Figure 16.2

6. Seasonality Seasonal variation refers to periodic increases or decreases that occur within a calendar year in a time series. The key is that these movements in the time series follow the same pattern each year. Introduction to Business Statistics, 5e Kvanli/Guynes/Pavur (c)2000 South-Western College Publishing

7. Seasonal Variation Introduction to Business Statistics, 5e Kvanli/Guynes/Pavur (c)2000 South-Western College Publishing Figure 16.5

8. Calculation of Seasonal Indexes Introduction to Business Statistics, 5e Kvanli/Guynes/Pavur (c)2000 South-Western College Publishing

9. Calculation of Seasonal Indexes Introduction to Business Statistics, 5e Kvanli/Guynes/Pavur (c)2000 South-Western College Publishing

10. Calculation of Seasonal Indexes Introduction to Business Statistics, 5e Kvanli/Guynes/Pavur (c)2000 South-Western College Publishing

11. Calculation of Seasonal Indexes Introduction to Business Statistics, 5e Kvanli/Guynes/Pavur (c)2000 South-Western College Publishing

12. Deseasonalizing Data Introduction to Business Statistics, 5e Kvanli/Guynes/Pavur (c)2000 South-Western College Publishing

14. Trend and Seasonal Variation Introduction to Business Statistics, 5e Kvanli/Guynes/Pavur (c)2000 South-Western College Publishing Figure 16.6

15. Cyclical Variation Cyclical variation describes a gradual cyclical movement about the trend; it is generally attributable to business and economic conditions. The length of the cycle is the period of that cycle and is measured from one peak to the next. Introduction to Business Statistics, 5e Kvanli/Guynes/Pavur (c)2000 South-Western College Publishing

16. Cyclical Variation Figure 16.7 Introduction to Business Statistics, 5e Kvanli/Guynes/Pavur (c)2000 South-Western College Publishing

17. Irregular Activity Irregular activity consists of what is “left over” after accounting for the effect of any trend, seasonality, or cyclical activity. Introduction to Business Statistics, 5e Kvanli/Guynes/Pavur (c)2000 South-Western College Publishing

18. Additive Structure Introduction to Business Statistics, 5e Kvanli/Guynes/Pavur (c)2000 South-Western College Publishing

19. Multiplicative Structure Introduction to Business Statistics, 5e Kvanli/Guynes/Pavur (c)2000 South-Western College Publishing

20. Linear Trend Figure 16.9 Introduction to Business Statistics, 5e Kvanli/Guynes/Pavur (c)2000 South-Western College Publishing

21. Cyclical Activity without Seasonality Introduction to Business Statistics, 5e Kvanli/Guynes/Pavur (c)2000 South-Western College Publishing

22. Cyclical Activity Figure 16.15 Introduction to Business Statistics, 5e Kvanli/Guynes/Pavur (c)2000 South-Western College Publishing

23. Seasonal Variation Introduction to Business Statistics, 5e Kvanli/Guynes/Pavur (c)2000 South-Western College Publishing

24. Four Step Procedure for Decomposition Determine the seasonal index deseasonalized the data Determine the trend component Determine the cyclical component. Introduction to Business Statistics, 5e Kvanli/Guynes/Pavur (c)2000 South-Western College Publishing

25. Price Indexes Introduction to Business Statistics, 5e Kvanli/Guynes/Pavur (c)2000 South-Western College Publishing

26. Price Indexes Introduction to Business Statistics, 5e Kvanli/Guynes/Pavur (c)2000 South-Western College Publishing

27. Prices for Items is 1990 and 1998 Introduction to Business Statistics, 5e Kvanli/Guynes/Pavur (c)2000 South-Western College Publishing