Concerning a Seasonal Index for Monthly Data, Which Statement Is

question 17

Multiple Choice

Concerning a seasonal index for monthly data, which statement is incorrect?

• A)A multiplicative index value of 1.000 indicates no seasonal deviation from trend.
• B)Additive indexes are adjusted so they always sum to 12.
• C)To make forecasts, we multiply the trend by each month's seasonal index.
• D)Seasonal indexes are obtained by the process called decomposition of a time series.

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Definitions:

Lump Sum

An amount of money paid in a single payment, rather than in installments.

11% Return

A specific rate of return on an investment, denoting a gain of eleven percent on the original amount invested.

Annual Interest Rate

The percentage of interest that is charged or earned on an investment or loan over a one-year period.

Down Payment

An initial payment made when purchasing an item on credit, particularly real estate, often expressed as a percentage of the purchase price.