The multiplicative decomposition method should not be used to forecast for a time series with increasing seasonal variation.

Name: The multiplicative decomposition method should not be used to forecast for a time series with increasing seasonal variation.
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Question

Quizplus · Accepted Answer

The multiplicative decomposition method is suitable for forecasting time series with increasing seasonal variation, as it models the seasonal component as varying proportionally with the level of the trend.

The Multiplicative Decomposition Method Should Not Be Used to Forecast