Question

The straight line is fitted to the time series when the movements in the time series are: *
Nonlinear
Linear
Irregular
Upward

Answer 1

The straight line is fitted to the time series when the movements in the time series are Linear.

Explanation:

A set of observations concurring any activity against different time periods is known as Time Series.

For E.g.:   - Profits earned by a firm for the past 3 years.

                - Workers employed by a firm for the past 10 years.

⇒ Methods of fitting a straight line to the time series are as follows:

• Free hand method
• Moving average method
• Semi-average method
• Least squares method