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Author Question: Why is it unnecessary to seasonally adjust annual data? What will be an ideal response? (Read 143 times)

savannahhooper

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on: Sep 11, 2019

Question 1

How does the shared-cost effect alter the spending plans of business travelers?
 
  What will be an ideal response?

Question 2

Why is it unnecessary to seasonally adjust annual data?
 
  What will be an ideal response?


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braelync

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Reply #1 on: Sep 11, 2019

Answer 1

The shared-cost effect refers to the impact of a third party, typically a company, paying for accommodations and other travel expenses. The recipient of this subsidy will be less sensitive to the price of a room and restaurant than one paying for the trip out of his/her own pocket.

Answer 2

A variable measuring an entire year's worth of activity already incorporates all of the variation from month to month and thus does not require any adjustment.


savannahhooper

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Reply 2 on: Sep 11, 2019
YES! Correct, THANKS for helping me on my review

Sarahjh

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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