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The advantage of cumulative sum analysis over comparing monthly figures is that it

  • A.is unaffected by changes in the tariff
  • B.accumulates small changes that monthly noise would hide
  • C.requires no production data to be collected
  • D.removes the need for a baseline relation

Answer: B

Correct answer: accumulates small changes that monthly noise would hide

A cumulative sum adds up the differences between actual and expected consumption month by month, so a persistent small deviation builds into a visible trend while random scatter cancels. A change of a few per cent that no single month would reveal shows as a clear change of slope, and the month it began can be read off directly.

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