Irregular variation in time series analysis, Financial Management

Assignment Help:

Irregular Variation

As the name suggests, the movement of the variable is random in nature without consistency and therefore, highly unpredictable. Since this type of irregularity exists for very short durations, the period under consideration will be of days, weeks and at the most of months. An appropriate example would be, a sudden spurt in the price of the share of a company rumors of a takeover. The irregular variation is shown in the figure below. Irregular variation is so inconsistent, that there is not a suitable mathematical model which would explain the phenomena under consideration.

Figure

520_irregular variation.png

Till now we have expressed the variations in terms of only one variation throughout. In the real world, this is seldom true and more often we find time series exhibiting more than one type of variation. In this part, we look at an example and examine it for three components of variation leaving out irregular variation.


Related Discussions:- Irregular variation in time series analysis

State about the detection risk, State about the Detection risk This is ...

State about the Detection risk This is the risk that auditors 'substantive procedures don't detect a material misstatement in an account balance or class of transactions. It is

Define advantages and the disadvantages of a new stock issue, What are the ...

What are the advantages and the disadvantages of a new stock issue? A new stock issue increases funds and reduces the riskiness of the firm. It as well tends to send a negative

Exchange requirements-, Exchange Requirements To ensure money supply, s...

Exchange Requirements To ensure money supply, some central banks require some or all of its foreign exchange receipts (generally from exports) be exchanged for the local curren

Assignment, Hi, what is your time limits on providing solutions

Hi, what is your time limits on providing solutions

Modern / discounting cash flow techniques, Modern / Discounting Cash Flow T...

Modern / Discounting Cash Flow Techniques : These methods generally are of more use to businesses in their investment decisions. They take into account the time value of money and

Evolution of securitization, Securitization is a financial innovati...

Securitization is a financial innovation born out of the necessity the savings and loan associations of the United States of America face to save themselves from im

What can financial institution often do for deficit econmic, What can a fin...

What can a financial institution often do for a deficit economic unit (DEU) that it would have difficulty doing for itself if the DEU were to deal directly with an SEU? SEUs us

Operating cycle, application of the operating cycle to a vegetable company

application of the operating cycle to a vegetable company

Determine the optimal production quantity, Water Wheelies manufactures high...

Water Wheelies manufactures high-pressure sprinkler heads. These are produced periodically at a rate of 20,000 per month. Demand is steady at 15,000 per month. Each production run

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd