In measuring seasonal and random variation of a time series with no cyclical effect,we may use the:
A) ratio of the time series divided by the moving average
B) ratio of the time series divided by the predicted values
C) trend value
D) Both a and b

Question

Quizplus · Accepted Answer

Both option A and B are used to measure seasonal and random variation of a time series with no cyclical effect. Option A involves dividing the time series by the moving average, which provides a measure of how much the individual values of the time series deviate from the overall average. Option B involves dividing the time series by predicted values, which are typically based on a trend line or other statistical model. Both options can help identify patterns in the data, including seasonal and random variations. Therefore, the best choice is D, which includes both options A and B.

In Measuring Seasonal and Random Variation of a Time Series