A component of the time series model that results in the multi-period above-trend and below-trend behavior of a time series is a(n) _____.
A) trend component
B) cyclical component
C) seasonal component
D) irregular component

Question

Quizplus · Accepted Answer

The cyclical component of a time series represents the fluctuations that occur over longer periods of time, typically more than a year, resulting in above-trend and below-trend behavior. The trend component, on the other hand, represents the long-term pattern of growth or decline in the time series. The seasonal component represents the regular, recurring fluctuations in the time series due to factors such as the month, day of the week, or time of day. The irregular component represents unpredictable fluctuations that cannot be explained by the other components.

A Component of the Time Series Model That Results in the Multi-Period