i. The ratio-to-moving-average method eliminates the seasonal, cyclical and irregular components from the original data (y).
Ii) The cyclical component of a time series is described in terms relative to the seasonal index.
iii. The irregular component of a time series is the easiest to measure.
A) (i), (ii) and (iii) are all correct statements
B) (i) and (ii) are correct statements, but not (iii).
C) (i) is a correct statement but not (ii) or (iii).
D) (ii) and (iii) are correct statements but not (i).
E) All statements are false

Question

i. The ratio-to-moving-average method eliminates the seasonal, cyclical and irregular components from the original data (y).
Ii) The cyclical component of a time series is described in terms relative to the seasonal index. 
iii. The irregular component of a time series is the easiest to measure.
A) (i), (ii) and (iii) are all correct statements
B) (i) and (ii) are correct statements, but not (iii).
C) (i) is a correct statement but not (ii) or (iii).
D) (ii) and (iii) are correct statements but not (i).
E) All statements are false

Quizplus · Accepted Answer

The ratio-to-moving-average method primarily removes the seasonal component, not all components. The cyclical component is not described relative to the seasonal index, and the irregular component is typically the hardest to measure due to its randomness.

I the Ratio-To-Moving-Average Method Eliminates the Seasonal, Cyclical and Irregular