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.

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