The method of least squares is used on time-series data for
A) deseasonalizing the data.
B) obtaining the trend equation.
C) exponentially smoothing a series.
D) eliminating irregular movements.

Question

Quizplus · Accepted Answer

The method of least squares is used to obtain the trend equation for time-series data, which helps in identifying the overall pattern and direction of the data. This involves fitting a regression line to the data points by minimizing the sum of the squared differences between the observed values and the predicted values. It does not address deseasonalizing, exponentially smoothing, or eliminating irregular movements.

The Method of Least Squares Is Used on Time-Series Data