Multiplicative seasonal adjustment is a statistical technique used to remove seasonal effects from time series data by multiplying the observed values by a factor that represents the seasonal fluctuations. This method is particularly useful when the seasonal variations are proportional to the level of the data, allowing for more accurate analysis and forecasting of underlying trends. It is crucial in enhancing the clarity of non-seasonal patterns and understanding the true performance of a time series over different periods.
congrats on reading the definition of multiplicative seasonal adjustment. now let's actually learn it.