In time series it is assumed that data consists of a systematic pattern and random noise. A systematic pattern is a group of identifiable components and random noise is an error. But the random noise can make the pattern difficult to identify.
When it comes to trend analysis, there isn’t any specific automatic tool that can be used to assess trend components.
If the trend is monotonous then it isn’t difficult to identify the pattern, but if there are errors then the trend needs to be smoothened and be linear fitted.
Seasonal patterns are visually identified through correlograms. The correlograms present the autocorrelation function graphically and numerically.
Post Your Answer
Related Questions