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:
“One of the great reasons for the popularity of strikes is that they give the suppressed self a sense of power. For once the human tool knows itself a man, able to stand up and speak a word or strike a blow.”
—Charles Horton Cooley (18641929)
“Youth does not require reasons for living, it only needs pretexts.”
—José Ortega Y Gasset (18831955)
“A painter told me that nobody could draw a tree without in some sort becoming a tree; or draw a child by studying the outlines of its forms merely,but by watching for a time his motions and plays, the painter enters into his nature and can then draw him at will in every attitude.”
—Ralph Waldo Emerson (18031882)