Additive Vs Multiplicative (MA) Flashcards
1
Q
How to calculate seasonal variance ?
A
= actual - the MA
2
Q
Create table for seasonal variation (additive)
A
Put the seasonal variation dat in a table to work out seasonal variance avg
3
Q
How to forecast using additive ?
A
Last MA or last centred MA+ (number of periods that have elapsed since the last moving avg x general trend) +/- seasonal variance
4
Q
How to work out seasonal indices ?(multiplicative)
A
= actual / MA
Change it into a percentage
5
Q
How to forecast using the multiplicative model ?
A
(Last MA + (number of periods since last MA x general trend) ) x seasonal index