Monthly seasonal factors should be adjusted so they sum to 12.

Question

Quizplus · Accepted Answer

Monthly seasonal factors are used to account for systematic fluctuations in a time series that occur at regular intervals within a year. These factors are usually standardized so that they sum to 12 over the months of the year. This is done to ensure that the seasonal component of the time series is properly accounted for and does not skew the overall trend. Therefore, the statement is true.

Monthly Seasonal Factors Should Be Adjusted So They Sum to 12