One requirement for using the linear trend multiplicative method is ______.
A)tracking signals should be used
B)time series demand data should exhibit a linear trend with seasonal variations
C)seasonal indices need not be available
D)time series demand should exhibit a nonlinear trend with seasonal variations

Question

Quizplus · Accepted Answer

The linear trend multiplicative method is appropriate when the time series demand data exhibits a linear trend with seasonal variations. Therefore, option B is the correct answer. The other options are incorrect because tracking signals may be used with any forecasting method (option A), seasonal indices should be available for the linear trend multiplicative method (option C), and the linear trend multiplicative method is not appropriate for a time series demand with a nonlinear trend (option D).

One Requirement for Using the Linear Trend Multiplicative Method Is