If a Time Series Exhibits Increasing Seasonal Variation, One Approach

question 47

Multiple Choice

If a time series exhibits increasing seasonal variation, one approach is to first use a(n) ________ transformation that produces a transformed time series that exhibits constant seasonal variation. Then, ________ variables can be used to model the time series with constant seasonal variation.

• A) autocorrelation, dummy
• B) fractional power, dummy
• C) fractional power, constant
• D) autocorrelation, constant

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Definitions:

Walk

To move at a regular pace by lifting and setting down each foot in turn, never having both feet off the ground at once.

Explore

To investigate, study, or analyze with the purpose of discovering more information.

Camouflaged Verbs

Verbs that are transformed into nouns or adjectives, often making sentences more complicated and harder to understand.

Acquisition

The process of gaining possession or control of something, such as a company purchasing another company or assets.