In a multiplicative model, if the seasonal factor is 1.15 for a particular season, then we expect that the time series in that season would be (other things being equal):
A)115% above the trend.
B)115% below the trend.
C)15% above the trend.
D)15% below the trend.

Question

Quizplus · Accepted Answer

In a multiplicative model, a seasonal factor of 1.15 means the time series value is expected to be 15% above the trend for that particular season.

In a Multiplicative Model, If the Seasonal Factor Is 1