STATISTICAL TECHNIQUES IN BUS.+ECON.
STATISTICAL TECHNIQUES IN BUS.+ECON.
18th Edition
ISBN: 9781260239478
Author: Lind
Publisher: RENT MCG
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Chapter 18, Problem 1E
To determine

To draw: The graphs showing a stationary trend, a positive trend, and a negative trend. And label them.

Expert Solution & Answer
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Explanation of Solution

Trend analysis is an important component or technique of Time Series, which uses past data to predict the future. It indicates the change in a variable over a given time period. It may be stationary, positive, or negative.

A positive trend is one in which a rise in one set of data results in an increase in the other set. And a negative trend is one in which a rise in one set of data results in a decrease in the other set. On the other hand, if one set of data rises but the other does not appear to rise or fall, a trend is not there.

Graph:

The graph representing the stationary trend is:

  STATISTICAL TECHNIQUES IN BUS.+ECON., Chapter 18, Problem 1E , additional homework tip  1

The graph representing a positive or upward trend is:

  STATISTICAL TECHNIQUES IN BUS.+ECON., Chapter 18, Problem 1E , additional homework tip  2

The graph representing a negative or downward trend is:

  STATISTICAL TECHNIQUES IN BUS.+ECON., Chapter 18, Problem 1E , additional homework tip  3

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