Time Series Analysis MBA 1st Year Semester Very Short Question Answer Notes
Time Series Analysis MBA 1st Year Semester Very Short Question Answer Notes:- In this Post, you will see about Time Series Analysis MBA 1st Year Semester Very Short Question Answer Notes and Study Material Notes Unit Wise Syllabus Chapter Wise Notes Time Series Analysis, Concept, Additive, And multiplicative models, Components of time series, Trends Analysis, Least-squares Method Linear and nonlinear equations, applications In Business Decision-Making. Index Number Meaning, Types of Index Numbers, Uses Of Index Numbers, Construction Of Price, quantity And Volume Indices Fixed Base and Chain Base Methods.
Q.1 what is time series? Give its various components.
Ans. A time series is a historical series of statistical data. Since statistical data are historical, they are subject to the influences of all the changes that may occur over any period of time. The usual classification of the influences affecting statistical data recording over time is one based upon the nature of the influence.
Q.2. Give any two merits and demerits of the free-hand method?
Ans. Merits: These are as follows:
- Free-hand method of estimating trends is the simplest method. Time and labor are saved, for the reason they are widely used in business.
- It is more flexible than rigid mathematical function, hence fitting the curve more closely to the data.
Demerits: These are as follows:
- The main demerit of this method is that it is highly subjective. The results will depend very much on the judgment of the drawer of the line, hence subject to personal bias, mistakes, etc.
- The free-hand method of curve fitting is subjective. It has little value as a bias of projection future.
Q.3. Give the application of time series in business decision-making.
Ans. Application of time series are:
- Study of the past behavior of the data.
- Comparison with other series.
- Study of present fluctuations.
- Estimation of trade cycles.
Q.4. what do you mean by trend analysis?
Ans. The term trend analysis refers to the concept of collecting information and attempting to spot a pattern or trend in the information. It uses a technique called least squares to fit a trend line to a set of time series data and then project the line into the future for a forecast.
Q.5. What do you understand by index numbers?
Ans. The index number is a ratio or an average of ratios expressed as a percentage. It is a statistic that assigns a single number to several individual statistics in order to quantify trends.