Which of the following best describes what may be used when measuring the seasonal and random variation of a time series with no cyclical effect?
A)The trend value ŷ.
B)The ratio of the time series divided by the predicted values.
C)The ratio of the time series divided by the moving average and the ratio of the time series divided by the predicted values.
D)The ratio of the time series divided by the moving average.

Question

Quizplus · Accepted Answer

The ratio of the time series divided by the moving average and the ratio of the time series divided by the predicted values are methods used to isolate the seasonal and random components of a time series when there is no cyclical effect. These ratios help in understanding the variations after removing the trend component.

Which of the Following Best Describes What May Be Used