If a time series plot exhibits a horizontal pattern, then:
A) it is evident that the time series is stationary.
B) the data fluctuates randomly around a variable mean.
C) there is no relationship between time and the time series variable.
D) there is no sufficient evidence to conclude that the time series is stationary.

Question

Quizplus · Accepted Answer

A time series plot for a stationary time series will always exhibit a horizontal pattern with random fluctuations. However, simply observing a horizontal pattern is not sufficient evidence to conclude that the time series is stationary.

If a Time Series Plot Exhibits a Horizontal Pattern, Then