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A company's monthly demand has a repeating annual seasonal pattern. Its average...

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A company's monthly demand has a repeating annual seasonal pattern. Its average demand increases significantly over several years, but the absolute magnitude of seasonal variations remains nearly unchanged.

Assertion (A): Additive seasonality may be more suitable than multiplicative seasonality.

Reason (R): Multiplicative seasonality is generally appropriate when seasonal effects change proportionally with the series level.

 

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