The Way a Seasonal Index Is Computed Involves Which of the Following

question 48

Multiple Choice

The way a seasonal index is computed involves which of the following steps?

• A)Remove the effect of seasonal and random variation by regression analysis.
• B)For each time period,compute the ratio, which removes most of the trend variation for that time period.
• C)Calculate the average of all the ratios: over all time periods to remove random variation and leaving a measure of seasonality.
• D)All of these choices are true.