To calculate the random component of a time series, ignoring the cyclical component, it would be the difference between an actual observation and the predicted value using a regression model with indicator variables for the seasonal component and time as the trend component.

Question

Quizplus · Accepted Answer

This is correct. The random component of a time series can be estimated by subtracting the predicted value from the actual observation, after accounting for the seasonal and trend components using a regression model with appropriate indicator variables.

To Calculate the Random Component of a Time Series, Ignoring