Question

Economic time series are maintained and published by some government agencies such as the Census Bureau and the Bureau of Labor Statistics, and they use time series decomposition. Why do you think they use time series decomposition? Explain in detail.

Answer 1

Answer:

Given by

The Economic series published by Census bureau and labor Bureau statistics by time series decomposition since time series decomposition can be use to divide time series in to seasonal, irregular and trend workings.

Therefore such methods best to apply for forecasting and get better accepting of variations in time series.

Thus,

Such agencies used this system to make decentralize time series.

As data presented for economic series are strongly varying natural world due to effect of change situations in local and global market consequently it is highly beneficial to depersonalize such data by making any judgment about long term trend in such industries.

That’s why,

Depending upon seasonal fluctuations over the instance additive or multiplicative decomposition model can be use