If a time series has constant seasonal variation,then the forecaster should use the multiplicative decomposition method to forecast future values of the time series.

Question

Quizplus · Accepted Answer

When a time series exhibits constant seasonal variation, the additive decomposition method is more appropriate because it assumes that the seasonal fluctuations are consistent over time, rather than proportionally changing with the level of the time series as in the multiplicative method.

If a Time Series Has Constant Seasonal Variation,then the Forecaster