Which of the following is not a necessary step to estimate the three parameters-level,trend,and seasonal factors of the systematic component of demand?
A) Deseasonalize demand and run linear regression to estimate level and trend.
B) Estimate seasonal factors.
C) Remove the trend factor of demand and run linear regression to estimate seasonal factors.
D) All of the above are steps.
E) None of the above are steps.

Question

Quizplus · Accepted Answer

Removing the trend factor of demand and running linear regression to estimate seasonal factors is not a necessary step to estimate the three parameters-level, trend, and seasonal factors of the systematic component of demand, as it assumes that the trend has already been estimated. The necessary steps are to deseasonalize demand and run linear regression to estimate level and trend, and to estimate seasonal factors.

Which of the Following Is Not a Necessary Step to Estimate