In Measuring Seasonal and Random Variation of a Time Series

question 52

Multiple Choice

In measuring seasonal and random variation of a time series with no cyclical effect,we may use the:

• A) ratio of the time series divided by the moving average
• B) ratio of the time series divided by the predicted values
• C) trend value
• D) Both a and b

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Definitions:

Bankers' Acceptance

A short-term debt instrument issued by a company but guaranteed by a bank, commonly used in international trade to facilitate transactions.

Letter of Credit

A document issued by a bank guaranteeing a buyer's payment to a seller within a specific timeframe and for a specific amount.

Cash Balances

The amount of cash or cash equivalents that a company or individual holds at a given time.

Marketable Securities

Financial instruments that can be easily converted into cash at a fair market value.