If a time series exhibits increasing seasonal variation,one approach is to first use a ______________ transformation that produces a transformed time series that exhibits constant seasonal variation.Then,_________ variables can be used to model the time series with constant seasonal variation.
A)Autocorrelation,dummy
B)Fractional power,dummy
C)Fractional power,constant
D)Autocorrelation,constant

Question

Quizplus · Accepted Answer

A fractional power transformation, such as a logarithm or square root, can stabilize increasing seasonal variation. Dummy variables can then be used to model the constant seasonal variation in the transformed series.

If a Time Series Exhibits Increasing Seasonal Variation,one Approach Is