A factor that inflates or deflates a trend value to compensate for the effect of a pattern that repeats over a period of one year or less is known as a
A) smoothing factor.
B) dampening factor.
C) seasonal index.
D) residual factor.

Question

Quizplus · Accepted Answer

A seasonal index is used to adjust for patterns that repeat over a period of one year or less. It is a factor that inflates or deflates a trend value to compensate for the effect of seasonality. A smoothing factor is used to remove random fluctuations from data, a dampening factor is used to reduce the impact of extreme values, and a residual factor is the difference between the actual and predicted values in a statistical model.

A Factor That Inflates or Deflates a Trend Value to Compensate