Sir In text book there is a particular paragraph in disadvantage of time series that seasonal variations are constant.
My question is whether seasonal variations are constant or not .
Ask the Tutor ACCA MA
Seasonal variations
They are very unlikely to be constant. If sales are increasing then the seasonal variations are likely to increase also when using the additive model. The multiplicative model would be better in this situation, but even then the variations are unlikely to be constant. That is why in both cases we calculate the average seasonal variations.
Do watch my free lectures on this where I explain. The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
Sign into reply to this topic.
