Correlation: Is a measure of how closely two variables are related, for example the pay of employees and their absenteeism. Correlation can be strong, weak or non-apparent.
Extrapolation: Used to predict the future. Draw a line of best fit on the graph to show the trend, and keep the line going to project the trend into the future.
Time series analysis: Used to reveal underlying patterns by recording and plotting data over time, for example the recording of sales over a year.
Trends: Long-term movement of a variable, for example the sales of a particular product over a number of years. Trends may be upward, constant or downward, but there are usually fluctuations around the trend.
Seasonal fluctuations: Repeat on a daily, weekly or yearly basis, e.g. the use of electricity over a 24-hour period, or the sale of ice lollies over a year.
Cyclical fluctuations: Regular repetitions over a medium term project, often many years. the business cycle of boom and bust has a cyclical pattern.
Moving average: One which is recalculated as new information comes in, to give you up to date information. E.g. the inflation rate, which is an average of the previous twelve months’ price rises, is updated every month.
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