I the Irregular Component of a Time Series Is the Easiest

question 16

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) (i), (ii), and (iii) are all false statements.

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