Time and trends

Structural break

A sudden change in a time series caused by a change in how the measure is defined or recorded.

  • Time and trends

Definition

A sudden change in a time series caused by a change in how the measure is defined or recorded. It is not a real change in the business. Figures on either side of a break are not directly comparable.

Also called

Break in a time series

Example

If Raket Parts' new ERP records orders differently, order counts could jump at go-live. That jump would be a break, not a business trend.

Raket Parts B.V. is a fictional company created for Insyt.

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