The multiplicative model
A)uses centered moving averages to smooth the trend fluctuations.
B)removes trend before isolating the seasonal components.
C)deseasonalizes a time series by dividing the values by the appropriate seasonal index.
D)provides a unique seasonal index for each observation of the time series.

Question

Quizplus · Accepted Answer

The multiplicative model is commonly used for time series analysis and involves decomposing the time series into its seasonal, trend, and irregular components. The seasonal component is then deseasonalized by dividing the values by the appropriate seasonal index. This scaling is referred to as the multiplicative adjustment, as it involves multiplying the seasonal indices by the original values. The other options listed are not characteristics of the multiplicative model.

The Multiplicative Model