Describe some of the difficulties and ethical issues in using seasonal indexes t

Question

Describe some of the difficulties and ethical issues in using seasonal indexes to seasonalize and deseasonalize data. Please do not privide answers already on the internet! I have those already and will not pay for this question if it's in Chegg data base or course hero. Describe some of the difficulties and ethical issues in using seasonal indexes to seasonalize and deseasonalize data. Please do not privide answers already on the internet! I have those already and will not pay for this question if it's in Chegg data base or course hero.

Explanation / Answer

Using seasonal indexes to seasonalise and deseasonalise has the following difficulties:

a.) The indexes in the real world are always available at a time lag, so actual trends may not be reflected.

b.) The behaviour of the previous season may not be depected in this season also in the same manner( for example if we are desesonalising data of sale of fancy umbrellas in rainy season the index we will use will most probably based on rhe previous rainy season , but it is not sure that the trend in rise of sale of umbrellas in the previous rainy seasson will be the same as the current one)]

c.) Use of seasonal trends sometimes tends to diminish the effect of the regular trend, this case is more evident in the case of a scenario in which the regular trend may be undergoing a change ( for example during the change of an exponential trend to linear trend if a seasonal trend arises and if we use seasonal indices to detrend the data of seasonal effect the change in the regular trend gets masked)( this happens when we see the trend of increase in sale of feature phones, the trend of which changed by the introduction of android, but if at that time a festive season was there then the trend of increase of sale due to that featival when deseasonalised by the use of seasonal indeces will mask the change of trend from exponential to linear

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