With the multiplicative seasonal method of forecasting,
A) there can only be four seasons in the time series data.
B) the times series cannot exhibit a trend.
C) the seasonal amplitude is a constant, regardless of the magnitude of average demand.
D) seasonal factors are multiplied by an estimate of average demand to arrive at a seasonal forecast.

Question

Quizplus · Accepted Answer

The multiplicative seasonal method involves multiplying seasonal factors by an estimate of average demand to account for seasonal variations in the forecast.

With the Multiplicative Seasonal Method of Forecasting