Page 25 - Microsoft Word - 00 P1 IW Prelims.docx
P. 25
External analysis
Time series analysis
6.1 What is it?
Time series analysis uses moving averages to create a trend line over time,
established from historical data, that, when adjusted for seasonal variations, can then
be used to make predictions for the future.
6.2 Components of a time series
The trend describes the long term general movement of the data.
Seasonal variations a regular variation around the trend over a fixed time
period, usually one year.
19
