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:
“Here we also see: what this divinity lacks is not only a sense of shame—and there are also other reasons for conjecturing that in several respects all of the gods could learn from us humans. We humans are—more humane.”
—Friedrich Nietzsche (1844–1900)
“... to a poet, the human community is like the community of birds to a bird, singing to each other. Love is one of the reasons we are singing to one another, love of language itself, love of sound, love of singing itself, and love of the other birds.”
—Sharon Olds (b. 1942)
“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)