Question
You have a monthly times series with obvious seasonality and a strong upward trend. Which of the following is the most reasonable procedure for forecasting
You have a monthly times series with obvious seasonality and a strong upward trend. Which of the following is the most reasonable procedure for forecasting this series?
a. Estimate the seasonal factors, then divide the original series by the seasonal factors, then use Holt's exponential smoothing method to forecast the deseasonalized series, and finally multiply the deseasonalized forecasts by the seasonal factors.
b. Estimate the seasonal factors, then multiply the original series by the seasonal factors, then use the moving averages method to forecast the deseasonalized series, and finally divide the deseasonalized forecasts by the seasonal factors.
c. Estimate the seasonal factors, then multiply the original series by the seasonal factors, then use Holt's exponential smoothing method to forecast the deseasonalized series, and finally divide the deseasonalized forecasts by the seasonal factors.
d. Estimate the seasonal factors, then divide the original series by the seasonal factors, then use the moving averages method to forecast the deseasonalized series, and finally multiply the deseasonalized forecasts by the seasonal factors.
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