Irregular variation in time series analysis, Financial Management

Irregular Variation

As the name suggests, the movement of the variable is random in nature without consistency and therefore, highly unpredictable. Since this type of irregularity exists for very short durations, the period under consideration will be of days, weeks and at the most of months. An appropriate example would be, a sudden spurt in the price of the share of a company rumors of a takeover. The irregular variation is shown in the figure below. Irregular variation is so inconsistent, that there is not a suitable mathematical model which would explain the phenomena under consideration.

Figure

520_irregular variation.png

Till now we have expressed the variations in terms of only one variation throughout. In the real world, this is seldom true and more often we find time series exhibiting more than one type of variation. In this part, we look at an example and examine it for three components of variation leaving out irregular variation.

Posted Date: 9/17/2012 3:46:43 AM | Location : United States







Related Discussions:- Irregular variation in time series analysis, Assignment Help, Ask Question on Irregular variation in time series analysis, Get Answer, Expert's Help, Irregular variation in time series analysis Discussions

Write discussion on Irregular variation in time series analysis
Your posts are moderated
Related Questions
Rating denote an issuer's ability to respond to adverse changes in circumstances and economic conditions. The rating scale is generally differentiated into variou

what are some of the skills in asmall scale business

Q. Benefits of the proposed policy change? Short-term sources of debt finance comprise overdrafts and short-term loans. An overdraft offers elasticity but since it is technical

Q. What is Purchasing Power Risk? Variations in the returns are caused also by the loss of purchasing power of currency. Inflation is the reason behind the loss of purchasing p

#questioDiscuss the applicability of an operating cycle in the vegetable growing business n..

What are compensating balances and why do banks require them from some customers?  Under what circumstances would banks be most likely to impose compensating balances? Compensati

How are financing costs generally incorporated into the capital budgeting analysis process? Financing costs are typically captured in the discount or hurdle rate when doing IRR

What is the effect of stock (not cash) dividends and stock splits on the market price of common stock?  Why do corporations declare stock splits and stock dividends? Stock splits

Q. Determine Earnings per share? Current earnings per share = 100 × (4550 - 225)/ 5000 = 86.5 cents Earnings per share after one year = 100 × (4508 - 225)/ 5000 = 85.7 cents

A firm has sales of $6,500, net income of $500, total assets of $12,000, and total equity of $700. Interest expense is $1000. What will be the common-size statement value of the in