A researcher applies STL decomposition to monthly airline passenger data. Four interpretations are proposed. Identify the incorrect statement.

Question

Accepted Answer

A small remainder automatically confirms that the extracted trend and seasonality will remain stable in future observations.

Answer

A large remainder during a particular month may reflect an unusual event not adequately represented by the extracted trend and seasonality.

Answer

A slowly changing trend component may indicate long-term growth or decline in passenger traffic.

Answer

A changing seasonal component may capture gradual changes in the magnitude of seasonal fluctuations.

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