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Trend variance rate

Measures the share of the trend component in a time series

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Written by Anthony Cabos
Updated over 4 years ago

Definition

The trend variance rate represents the part of the variation of a time series due to the trend. This corresponds to the variance of the compared component to the variance of the time series. It is rebased to 100 to know the proportion of this component over the time series.

Calculation

Trend variance rate = trend variance / (season variance + trend variance + residual variance)

Example

For a market that have sales and the following breakdown:

We thus have a trend variance rate of 7%.

Terminology

The trend variance rate can be translated into English as "Trend Variance Ratio".

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