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For instance, measuring the value of retail sales each month of the year would compromise a time series. This is because sales revenue is well defined, and consistently measured at equally space intervals. An observed time series can be decomposed into three components: the trend (long term), the seasonal (systematic, calendar related movements) and the irregular (unsystematic, short term fluctuations)...
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An observed time series can be decomposed into three components: the trend (long term), the seasonal (systematic, calendar related movements) and the irregular (unsystematic, short term fluctuations).
The multiplicative decomposition method is a strategy that uses a multifactor (Yt = f (T,C,S,e) where Yt = actual value of the time series at time t f = mathematical function of T = trend, C = cyclical influences, S = seasonal influences and e = error (Hora, Dodd, & Hora, 1993)...
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