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Trend Lines and Seasonal Variation

HigherHigher tier onlyAQAEdexcel

Master Trend Lines and Seasonal Variation for GCSE Statistics with this free worksheet and full mark scheme — Higher tier exam-style questions with worked answers for AQA and Edexcel. A trend line through the moving averages shows the overall trend, and seasonal variation is the difference from it.

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These worksheets and mark schemes are original, written for Virtus Academy and checked against the current AQA and Edexcel specifications. Every worksheet comes with a full mark scheme.

This is a Higher tier only topic, so there's no Foundation paper — only the Higher worksheet and mark scheme below.

Topic overview

A trend line drawn through a moving average shows the underlying direction of a time series, and seasonal variation can then be measured against it. This is a Higher-only topic.

The trend line is drawn through the plotted moving averages, not through the original data points, because the moving averages have already had seasonal variation smoothed out.

Seasonal variation for any point is calculated as actual value minus trend value. A positive result means the actual value was above trend for that season; a negative result means below. The mean seasonal variation for a given season is found by averaging its variations across cycles, and this is used to make predictions: predicted value = trend value + mean seasonal variation.

Revision notes

Drawing the trend line

Draw the line of best fit through the plotted moving averages, not the original data points.

The moving averages have already had seasonal variation smoothed out, so they show the underlying trend directly.

Calculating seasonal variation

Seasonal variation \(=\) actual value \(-\) trend value.

A positive result means the actual value was above the trend for that season; negative means below. Calculate it for each point where a trend value exists.

Predicting future values

Extend the trend line to read the trend value for the future period.

Then predicted value \(=\) trend value \(+\) mean seasonal variation for that season. The mean seasonal variation is found by averaging that season's variations across the cycles available.

Key points

  • The trend line goes through the moving averages.
  • Moving averages have seasonality removed.
  • Seasonal variation = actual − trend.
  • A positive variation means above trend.
  • Mean seasonal variation averages across cycles.
  • Prediction = trend value + mean seasonal variation.

Worked examples

Example 1

An actual value is 340 and the trend value is 310. Work out the seasonal variation. [2 marks]

Working

Seasonal variation \(=\) actual \(-\) trend \(= 340 - 310\)subtract the trend value from the actual value
\(= 30\), so the value is 30 above trendstate the result

Example 2

A trend value is 480 and the mean seasonal variation for that quarter is \(-25\). Work out the predicted value. [2 marks]

Working

Predicted \(=\) trend \(+\) mean seasonal variation \(= 480 + (-25)\)add the seasonal variation to the trend value
\(= 455\)work out the prediction

Example 3

Explain why the trend line is drawn through the moving averages rather than the original data. [2 marks]

Working

The moving averages have already had the seasonal and random variation smoothed outstate the property
so they show the underlying trend directly, whereas the original data still contains seasonal fluctuationexplain why that matters

Common mistakes

  • Drawing the trend line through the raw data.

    It goes through the moving averages, which are already smoothed.

  • Subtracting the wrong way round.

    Seasonal variation is actual minus trend, so it can be negative.

  • Forgetting the sign of the seasonal variation.

    A negative variation must be added as a negative when predicting.

  • Using a single season's variation rather than the mean.

    Average that season's variations across the cycles available.

Exam tips

  • Draw the trend line through the moving averages.
  • Subtract trend from actual, keeping the sign.
  • Use the mean seasonal variation when predicting.
  • Remember this is a Higher-only topic.

Key terms

Trend line
A line of best fit through the moving averages.
Seasonal variation
Actual value minus trend value.
Mean seasonal variation
The average variation for a given season.
Prediction
Trend value plus mean seasonal variation.

Written and reviewed against the current AQA and Edexcel specifications. Spotted an error? Let us know.