explain the concept of freehand method and it's merits and demerits?
Answers
Answer:
This method is very simple and easy to understand. It is applicable to linear and non-linear trends. It gives us an idea about the rise and fall of the time series.
Answer:
This is a familiar concept, and is briefly described for drawing frequency curves. In case of a time series a scatter diagram of the given observations is plotted against time on the horizontal axis and a freehand smooth curve is drawn through the plotted points. The curve is so drawn that most of the points concentrate around the curve, however, smoothness should not be scarified in trying to let the points fall exactly on the curve. It is better to draw a straight line through the plotted points instead of a curve, if possible. The curve fitted by this method eliminates the short term and long term oscillations and the irregular movements from the time series, and elevates the general trend. After having drawn such a curve or line, the trend values or the estimated Y values, which may be denoted by Y, can be read from the graph corresponding to each time period.