The decomposition method attempts to isolate four separate portions of a time series, which are __________.
A) The trend, the numbers, the fashions and randomness
B) The trend, cyclical, seasonal, and random factors
C) The trend, the effect, the season, and random factors
D) The trend, the forecast, the smoothing, the decomposition
E) None of the above

Question

Quizplus · Accepted Answer

The decomposition method aims to separate a time series into four distinct components: trend, cyclical, seasonal, and random factors. This allows for a more accurate analysis of the underlying patterns and behavior of the time series. The other options listed are not generally considered components of a time series.

The Decomposition Method Attempts to Isolate Four Separate Portions of a Time