The level of construction employment in Sydney is lowest during the winter. A model designed to forecast construction employment in Sydney should use:
A)a time trend.
B)a moving average.
C)a seasonal indicator variable.
D)an autoregressive model.

Question

Quizplus · Accepted Answer

As the level of construction employment in Sydney is lowest during the winter, a seasonal indicator variable will be the best choice to capture the seasonality pattern in the data. A time trend may not necessarily capture the seasonal effects, and a moving average or an autoregressive model may not be appropriate for capturing the seasonal pattern in the data.

The Level of Construction Employment in Sydney Is Lowest During