If time-series data exhibit a seasonal pattern, which of the following approaches could be used to compute season indexes?
A) The exponential smoothing technique
B) The multiplicative model
C) The Pearson product-moment approach
D) None of the above

Question

Quizplus · Accepted Answer

The multiplicative model is commonly used to compute season indexes when time-series data exhibit a seasonal pattern. This model assumes that the seasonal effect multiplies the trend-cycle component, making it suitable for handling seasonal variations in the data.

If Time-Series Data Exhibit a Seasonal Pattern, Which of the Following