I a Typical Monthly Seasonal Index of 107

question 44

Multiple Choice

i. A typical monthly seasonal index of 107.0 indicates that sales (or whatever the variable is) are 7
Percent above the annual average.
ii. 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.
iii. In the final step, using the ratio-to-moving-average method on quarterly data, the total of the
Modified means should theoretically be equal to 400 because the average of should be 100.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• 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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Definitions:

Independent Events

Events whose outcome or occurrence does not affect each other.

P(A ∩ B)

The probability of the intersection of events A and B, indicating the likelihood of both events occurring simultaneously.

P(B)

The probability notation representing the likelihood of event B occurring.

Indian Slave Trade

The historical practice of enslavement and trade of indigenous peoples of the Americas, especially prevalent during the European colonization era.