Which of the following statements is true?
A)In trend analysis,the independent variable is time only if the equation is linear.
B)The number of time periods in centered moving average is always even.
C)If the seasonal index for December sales is 120,this means that December sales tend to be 120% as high as the "average" month.
D)The cyclical component of a time series refers to repeating patterns that have a period of a year or less.

Question

Quizplus · Accepted Answer

This statement is true according to the definition of a seasonal index, which measures how a specific month or season compares to the average level of the time series. A seasonal index of 120 for December sales means that December sales tend to be 120% as high as the average of all the months in the time series.

Which of the Following Statements Is True