Increasing seasonal variation implies that the time series is nonstationary with respect to its variance.

Question

Quizplus · Accepted Answer

Seasonal variation is a type of nonstationarity that affects the variance of a time series. By definition, if the seasonal variation is increasing, then the variability of the time series is changing over time, which means that the time series is not stationary in terms of its variance. Therefore, the statement is true.

Increasing Seasonal Variation Implies That the Time Series Is Nonstationary