Calculating the "ratios of actuals to moving average" is a common step in time series decomposition.The results (the quotients)of this step estimate the ________.
A)trend and cyclical components
B)seasonal and irregular components
C)cyclical and irregular components
D)trend and seasonal components
E)irregular components

Question

Quizplus · Accepted Answer

The "ratios of actuals to moving average" step in time series decomposition is used to estimate the seasonal and irregular components. This step helps in isolating these components from the overall data by comparing the actual data points to a smoothed version of the series (the moving average), highlighting the periodic fluctuations (seasonality) and the random or unpredictable movements (irregular components).

Calculating the "Ratios of Actuals to Moving Average" Is a Common