With the multiplicative seasonal method of forecasting:
A. the times series cannot exhibit a trend.
B. seasonal factors are multiplied by an estimate of average demand to arrive at a seasonal forecast.
C. the seasonal amplitude is a constant, regardless of the magnitude of average demand.
D. there can be only four seasons in the time-series data.
Answer:B
With the multiplicative seasonal method of forecasting:
A. the times series cannot exhibit a trend. B. seasonal factors are multiplied by an estimate of average demand to arrive at a seasonal forecast. C. the seasonal amplitude is a constant, regardless of the magnitude of average demand. D. there can be only four seasons in the time-series data.