A time series is a set of observations recorded at successive intervals of
time.
The simplest and more
commonly employed methods to measure Trend Component of a Time Series are:
1.
Graphic or Free hand Method: First of all the data is
plotted on a graph paper and the trend line is fitted by a line or a freehand
curve by just inspecting and following the graph of the series. The curve
need to be smooth and with almost equal number of points above and below
it. By eye estimate, the sum of the vertical deviations of the given
points above the trend line should approximately equal to the sum of the
vertical deviations of the given points below the trend line. Also the sum of
the squares of the vertical deviations of the given points from the trend line
should be minimum possible.
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