ABSTRACT
Many business and economic statistics are reported as time series. Trend and seasonal components can be calculated directly from a time series. After the trend and seasonal components have been estimated, the data can be transformed and examined for evidence of cycles. One of the more important uses of time series analysis is to construct a seasonal index. Time series analysis is important because it provides a technique for working with business statistics which occur as unique points in time. This chapter focuses on attention on whether long-term trends or seasonal factors are more important in terms of future events. Armed with this information, the decision maker can concentrate on trying to understand and estimate the forces that give rise to seasonal or trend shifts.
