what are the merits and demerits of the semi-average methot?
Answers
Answer:
Merit
1. it is an easy method
2. it is free from bias
3. trend values thus obtained are definite
4. less time and effort is involved in drawing the trend line
Demerit
1. it is based on straight line trend assumptions which does not always hold true
2. it is effected by extreme values
3.. it egnore the effect of cyclical fluctuations
Answer:
Merits
This semi-average method is very simple and easy to understand, and also it does not require many calculations. The method is used only when the trend is linear or almost linear.
Demerits
For non-linear trends, the semi-average method is not applicable. It is used for the calculation of averages, and averages are affected by extreme values.
This method assumes a straight-line relationship between the plotted points without considering the fact whether that relationship exists or not.
Step-by-step explanation:
Thus if there is some very large value or very small value in the time series, that extreme value should either be omitted or this method should not be applied. We can also write the equation of the trend line.
The original values of the time series are divided into two equal parts and averages are calculated in both the parts, which are called semi averages the two points and extending the line which gives the trend of the time series.20-Mar-2020