Trend Analysis

Managers must often determine whether the variations in business activity indicated by statistics have any regular pattern.

Trend analysis, also known as time-series analysis, is the examination of data over a sufficiently long time so that regularities and relationships can be detected, interpreted, and used as the basis for forecasts of business activity. Such an analysis generally explains changes in terms of three factors: seasonal variations, cyclical variations, and secular (or long-term) trends in business growth.

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