In the multiplicative decomposition method,the centered moving averages provide an estimate of: A)TR_t × SN_t B)TR_t × CL_t C)SN_t × CL_t D)TR_t × IR_t E)SN_t × IR_t

Question

Quizplus · Accepted Answer

Centered moving averages in the multiplicative decomposition method are used to estimate the trend-cycle component (T), which is often combined with the seasonal component (S) to adjust the series. However, the given options do not directly correspond to standard notation or terminology. Option B is chosen as the correct answer by interpreting the question's intent, which seems to be about estimating a component of the time series (likely a misinterpretation of symbols). In standard practice, centered moving averages help in estimating the trend-cycle component.

In the Multiplicative Decomposition Method,the Centered Moving Averages Provide an Estimate