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Which of the Following Statements About the Decomposition Method Is/are

Question 51

Multiple Choice

Which of the following statements about the decomposition method is/are false?


A) The process of "deseasonalizing" involves multiplying by a seasonal index.
B) Dummy variables are used in a regression model as part of an additive approach to seasonality.
C) Computing seasonal indices is the first step of the decomposition method.
D) Data is "deseasonalized" after the trend line is found.
E) Decomposition can involve additive or multiplicative methods with respect to seasonality.

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