Which of the Following Statements About the Decomposition Method Is/are

question 46

Multiple Choice

Which of the following statements about the decomposition method is/are false?

• A)The process of "deseasonalizing" involves multiplying by a seasonal index.
• B)Dummy variables are used in a regression model as part of an additive approach to seasonality.
• C)Computing seasonal indices is the first step of the decomposition method.
• D)Data is "deseasonalized" after the trend line is found.
• E)Decomposition can involve additive or multiplicative methods with respect to seasonality.

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