Sir, Will the sum of season variation always will be zero
or
the sum will be Zero only if a straight-line trend exists ?
Ask the Tutor ACCA MA
Seasonal variation -Time series
If it is the additive model then the total should always be zero whether or not the trend is a straight line. (It won't be exactly zero for the reasons I explain my free lectures).
If it is the multiplicative model then the total should be 400 (again as I explain in the lecture) :-)
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