When deseasonalizing time series observation,we divide the actual time series observation by its __________.
A)irregular factor
B)cyclical factor
C)seasonal factor
D)weighted aggregate factor

Question

Quizplus · Accepted Answer

To deseasonalize a time series observation, it is divided by its seasonal factor, which accounts for the regular seasonal pattern in the data. This factor is obtained by averaging the values for each season across multiple years, and dividing the actual observation in each season by the average value for that season. This removes the seasonal component from the data, allowing for easier analysis of underlying trends and patterns. The other factors listed (irregular, cyclical, and weighted aggregate) are also important in time series analysis, but are not used specifically for deseasonalizing the data.

When Deseasonalizing Time Series Observation,we Divide the Actual Time Series