Which of the following is true?
A)In trend analysis, the independent variable is time only if the equation is linear.
B)The number of time periods in a centred moving average is always even.
C)If the seasonal index for December sales is 120, this means that December sales tend to be 120% higher than the 'average' month.
D)The cyclical component of a time series refers to repeating patterns that have a period of a year or less.

Question

Quizplus · Accepted Answer

A seasonal index of 120 means that December sales are 20% higher than the "average" month, as the average is typically represented by an index of 100. The other options are incorrect. In trend analysis, time is always the independent variable regardless of linearity. The number of time periods in a centered moving average can be even or odd. The cyclical component refers to repeating patterns with a period of more than a year.

Which of the Following Is True