Reasons For Studying Seasonal Variation
There are several main reasons for studying seasonal variation:
-
- The description of the seasonal effect provides a better understanding of the impact this component has upon a particular series.
- After establishing the seasonal pattern, methods can be implemented to eliminate it from the time-series to study the effect of other components such as cyclical and irregular variations. This elimination of the seasonal effect is referred to as deseasonalizing or seasonal adjustment of data.
- To project the past patterns into the future knowledge of the seasonal variations is a must for the prediction of the future trends.
Read more about this topic: Seasonality
Famous quotes containing the words reasons for, reasons and/or studying:
“It seems to me that we have to draw the line in sibling rivalry whenever rivalry goes out of bounds into destructive behavior of a physical or verbal kind. The principle needs to be this: Whatever the reasons for your feelings you will have to find civilized solutions.”
—Selma H. Fraiberg (20th century)
“One of the many reasons for the bewildering and tragic character of human existence is the fact that social organization is at once necessary and fatal. Men are forever creating such organizations for their own convenience and forever finding themselves the victims of their home-made monsters.”
—Aldous Huxley (1894–1963)
“Learning is acquired by reading books; but the much more necessary learning, the knowledge of the world, is only to be acquired by reading men, and studying all the various editions of them.”
—Philip Dormer Stanhope, 4th Earl Chesterfield (1694–1773)