Convert annual trend equation to monthly equation VC=2471.8x
Answers
Answer:
(i) To convert an annual trend equation into a monthly trend equation :
Divide a by 12, bX, by 12 12 (or 144), cX², by 12 × 12 × 12 (or 1728) and so on.
Explanation:
By conversion of a trend equation, we mean the change of trend equation formulated on one type of time basis into a trend equation on another type of time basis. Thus, if a trend equation of yearly period is transformed into a trend equation of monthly or quarterly period, or vice versa, it will be called conversion of a trend equation.
Methods of Conversion.
The following methods are to be adopted for converting a given trend equation into a required trend equation:
(i) To convert an annual trend equation into a monthly trend equation :
Divide a by 12, bX, by 12 12 (or 144), cX², by 12 × 12 × 12 (or 1728) and so on.
(ii) To convert a monthly trend equation into an annual trend equation.
Multiply a by 12, bX by 12 × 12 × 12 (or 1728) and so on.
(iii) To convert an annual trend equation into a Quarterly trend equation :
Divide a by 4, bX by 4 × 12 (or 48), cX², by 4 × 12 × 12 (or 576) and so on.
(iv) To convert a quarterly trend equation into an annual trend equation :
Multiply a by 4, bX by 4 × 12 and cX², by 4 × 12 × 12 and so on.
Example is in above image
