Additive Vs Multiplicative (MA) Flashcards

1
Q

How to calculate seasonal variance ?

A

= actual - the MA

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2
Q

Create table for seasonal variation (additive)

A

Put the seasonal variation dat in a table to work out seasonal variance avg

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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

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4
Q

How to work out seasonal indices ?(multiplicative)

A

= actual / MA

Change it into a percentage

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5
Q

How to forecast using the multiplicative model ?

A

(Last MA + (number of periods since last MA x general trend) ) x seasonal index

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