Match List-I with List-II List-1List-IIMethods to Deseasonalise the Time SeriesUnderlying Meaning(A). Method of simple average(I). It assumes that seasonal variation for a given month is constant fraction of trend(B). Ratio to Trend Method(II). It is the easiest method of obtaining a seasonal index(C). Ratio to moving average method(III). It is the most difficult method of measuring seasonal variations(D). Link relative method(IV). It is also known as the percentage of moving average methodChoose the correct answer from the options given below:

Question

Prepp Team · Accepted Answer

Matching Time Series Deseasonalisation Methods

This question requires matching the methods used to deseasonalise a time series (List-I) with their corresponding underlying meanings or descriptions (List-II).

Time Series Deseasonalisation Methods Explained

Deseasonalisation is the process of removing the seasonal component from a time series to better observe the trend and cyclical components. Here's a breakdown of each method and its meaning:

List-I: Methods to Deseasonalise the Time Series

(A) Method of simple average
(B) Ratio to Trend Method
(C) Ratio to moving average method
(D) Link relative method

List-II: Underlying Meaning

(I) It assumes that seasonal variation for a given month is constant fraction of trend
(II) It is the easiest method of obtaining a seasonal index
(III) It is the most difficult method of measuring seasonal variations
(IV) It is also known as the percentage of moving average method

Correct Matching and Explanation

Let's match each method from List-I to its correct description in List-II:

(A) Method of simple average matches with (II) It is the easiest method of obtaining a seasonal index. This method involves calculating the average seasonal effect for each period (e.g., month) across different years. It is straightforward to compute and understand.
(B) Ratio to Trend Method matches with (I) It assumes that seasonal variation for a given month is constant fraction of trend. In this approach, the seasonal component is viewed relative to the trend. The seasonal variation is often expressed as a percentage or fraction of the trend value.
(C) Ratio to moving average method matches with (IV) It is also known as the percentage of moving average method. This widely used technique calculates the ratio (often expressed as a percentage) of the actual time series value to its moving average. The moving average smooths out the seasonal and irregular components, leaving the trend-cyclical component.
(D) Link relative method matches with (III) It is the most difficult method of measuring seasonal variations. This method computes the ratio of the value in one period to the value in the preceding period (link relatives). These link relatives are then used to estimate seasonal patterns. It often involves more complex calculations and adjustments, making it comparatively more difficult.

Summary of Correct Matches

The correct matching is:

Method (List-I)	Meaning (List-II)
(A) Method of simple average	(II) Easiest method for seasonal index
(B) Ratio to Trend Method	(I) Seasonal variation as fraction of trend
(C) Ratio to moving average method	(IV) Percentage of moving average method
(D) Link relative method	(III) Most difficult method for seasonal variations

Therefore, the correct option is (A) - (II), (B) - (I), (C) - (IV), (D) - (III).

Prepp Team · Answer

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

Prepp Team · Answer

(A) - (I), (B) - (III), (C) - (II), (D) - (IV)

Prepp Team · Answer

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)