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IRREGULAR COMPONENT OF A TIME SERIES

Statistics Directorate    
Definition:
The irregular component of a time series is the residual time series after the trend-cycle and the seasonal components (including calendar effects) have been removed. It corresponds to the high frequency fluctuations of the series.

Context:
The irregular component results from short term fluctuations in a series which are not systematic and in some instances not predictable, e.g. uncharacteristic weather patterns. Some irregular effects can however be expected in advance, e.g. changes in value added tax.

In a highly irregular series, these fluctuations can dominate movements, which will mask the trend and seasonality. (ABS).

Source Publication:
OECD, 2005, Data and Metadata Reporting and Presentation Handbook, OECD, Paris, Section 4: Guidelines for the reporting of different forms of data.

Statistical Theme: Methodological information (metadata)

Created on Monday, July 11, 2005