Definition
The residual variance rate represents the part of the variation of a time series due to residuals (or noise). 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
Residual variance rate = variance of the residual / (variance of the trend + variance of the trend + variance of the residual)
Example
For a market that have sales and the following breakdown:
We thus have a residual variance rate of 37%.
Terminology
The trend variance rate can be translated into English as "Residual Variance Ratio".
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