i. The cyclical component of a time series is described in terms relative to the seasonal index. ii. The irregular component of a time series is the easiest to measure.
iii. The ratio-to-moving average method removes the time series trend component, resulting in 12 numbers that are called specific seasonals.
A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question

Quizplus · Accepted Answer

i. The cyclical component of a time series is related to business cycles and is not described in terms relative to the seasonal index. ii. The irregular component, also known as the random or residual component, is actually the most difficult to measure because it encompasses all the unexplained variation after accounting for trend, cyclical, and seasonal components. iii. The ratio-to-moving average method is used for seasonal adjustment, not for removing the trend component. The method helps in identifying the seasonal component within the data.

I the Cyclical Component of a Time Series Is Described