i. For a quarterly time series, the initial step, using the ratio-to-moving average method, is to remove
The seasonal components from the time series using a 3-month centered moving average.
ii. In the ratio-to-moving-average procedure, using the median or modified mean eliminates trend.
iii. In the final step, using the ratio-to-moving-average method on quarterly data, the total of the
Modified means should theoretically be equal to 400 because the average of should be 100.
A) (i) , (ii) , and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii) .
C) (i) and (iii) are correct statements but not (ii) .
D) (ii) and (iii) are correct statements but not (i) .
E) (i) , (ii) , and (iii) are all false statements.
Correct Answer:
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