I the Irregular Component of a Time Series Is the Easiest

question 18

Multiple Choice

i. The irregular component of a time series is the easiest to measure.
ii. The ratio-to-moving average method removes the time series trend component, resulting in 12 numbers that are called specific seasonals.
Iii) For a quarterly time series, the initial step, using the ratio-to-moving average method, is to remove the seasonal components from the time series using a 3-month centered moving average.

• A) (i), (ii) and (iii) are all correct statements
• B) (i) and (ii) are incorrect statements, but (iii) is correct.
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) All statements are false

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