One Application of Seasonal Indexes Is to Remove the Seasonal

question 27

True/False

One application of seasonal indexes is to remove the seasonal variation in a time series. The process is called deseasonalising, and the result is called a seasonally adjusted time series.

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Definitions:

Percentage

A proportion or share expressed as a fraction of 100, used to denote the relative size or magnitude of a part compared to the whole.

Symmetrical

In statistics, it describes a situation where the data distribution is evenly spread around the mean, having a balanced shape on either side.

Normal Curve

A bell-shaped curve that represents the distribution of many types of data where most values cluster around a mean.

Z Score

A numerical indicator showing how a specific value compares to the average of a set of values, given as the number of standard deviations away from that average.