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Statistical techniques
5.7 Limitations of time series analysis
There is an assumption that what has happened in the past is a
reliable guide to the future.
There is an assumption that a straight-line trend exists.
There is an assumption that seasonal variations are constant,
either in actual values using the additive model (such as dollars of
sales) or as a proportion of the trend line value using the
multiplicative model.
Illustrations and further practice
Now try TYU questions 7 and 8 from Chapter 12.
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