Seasonal variations can be incorporated into a time-series model in a number of different ways,including:
A) ratio-to-trend method
B) use of dummy variables
C) root mean squared error method
D) a and b only
E) a,b,and c

Question

Quizplus · Accepted Answer

Both the ratio-to-trend method and the use of dummy variables are common and effective ways to incorporate seasonal variations into a time-series model. The root mean squared error method, however, is not a suitable option for incorporating seasonal variations. Therefore, the best choice(s) is D, a and b only.

Seasonal Variations Can Be Incorporated into a Time-Series Model in a Number