In the multiplicative decomposition method,the centered moving averages provide an estimate of a trend's ____________.
A)Index
B)Cycle
C)Seasonal variation
D)Irregular variation

Question

Quizplus · Accepted Answer

Centered moving averages are used to estimate the cycle component in the multiplicative decomposition method, which represents the long-term fluctuations in the time series. Therefore, the best choice would be B) Cycle. The other components estimated in this method are seasonal variation, irregular variation, and index.

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