A time series plot of a period of time period (quarterly) verses quarterly sales (in $1,000s) is shown below. Which of the following data patterns best describes the scenario shown?
A)Linear trend and cyclical pattern
B)Linear trend and horizontal pattern
C)Seasonal and cyclical patterns
D)Seasonal pattern and linear trend

Question

A time series plot of a period of time period (quarterly) verses quarterly sales (in $1,000s) is shown below. Which of the following data patterns best describes the scenario shown? 
A)Linear trend and cyclical pattern 
B)Linear trend and horizontal pattern 
C)Seasonal and cyclical patterns 
D)Seasonal pattern and linear trend

Quizplus · Accepted Answer

The plot shows a repeating pattern of peaks and troughs every year or every 4 quarters, indicating a seasonal pattern. However, there is also a gradual increase in sales over time, indicating a linear trend. Therefore, the best choice is seasonal pattern and linear trend (D).

A Time Series Plot of a Period of Time Period