If a time series exhibits increasing seasonal variation,one approach is to first use a ______________ transformation that produces a transformed time series that exhibits constant seasonal variation.Then,_________ variables can be used to model the time series with constant seasonal variation.
A)autocorrelation,dummy
B)fractional power,dummy
C)fractional power,constant
D)autocorrelation,constant

Question

Quizplus · Accepted Answer

A fractional power transformation, such as a logarithm, can stabilize increasing seasonal variation, and dummy variables can then be used to model the constant seasonal variation.

If a Time Series Exhibits Increasing Seasonal Variation,one Approach Is