In the time series decomposition method, to obtain the ________, we divide the original observations by their corresponding adjusted seasonal indices.
A) seasonal dummy variables
B) seasonally adjusted series
C) unadjusted seasonal indices
D) adjusted seasonal indices

Question

Quizplus · Accepted Answer

In the time series decomposition method, the seasonally adjusted series is obtained by dividing the original observations by their corresponding adjusted seasonal indices. This is done to remove the effect of seasonality from the original series and to obtain a trend-cycle component that can be analyzed for underlying patterns or trends. The seasonal dummy variables, unadjusted seasonal indices, and adjusted seasonal indices are all used in the decomposition process but do not directly correspond to the seasonally adjusted series.

In the Time Series Decomposition Method, to Obtain the ________