In the multiplicative decomposition method,the centered moving averages provide an estimate of trend x _____.
A)index
B)cycle
C)seasonal
D)irregular

Question

Quizplus · Accepted Answer

The centered moving averages provide an estimate of the cycle component in the multiplicative decomposition method. The trend component is estimated using a simple moving average, while the seasonal component is estimated using seasonal indices. The irregular component represents the random fluctuations that cannot be attributed to any of the other components.

In the Multiplicative Decomposition Method,the Centered Moving Averages Provide an Estimate