I for a Quarterly Time Series, the Initial Step, Using

question 68

Multiple Choice

i. 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. ii. In the ratio-to-moving-average procedure, using the median or modified mean eliminates trend.
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.

---

Definitions:

Social Regulation

Laws or guidelines focused on improving health, safety, and the environment, which affect how products and services are produced, rather than price or market entry.

Natural Monopoly

A market condition in which a single firm can produce the entire market output at a lower cost than could be achieved by multiple competing firms.

Better Society

A concept or vision of a community or nation where living conditions, opportunities, and welfare are improved for all its members.

Social Regulation

Laws and rules designed to protect public welfare, including health, safety, and environmental quality.