The time series component that reflects the irregular changes in a time series that are not caused by any other component,and tends to hide the existence of the other more predictable components,is called random variation.

Question

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Random variation, also known as noise or residual, is the component of a time series that cannot be explained or predicted by the other components such as trend, seasonality or cyclical variation. It represents the random fluctuations that are inherent in any data and can obscure the signal or pattern in the other components. Therefore, the statement is true.

The Time Series Component That Reflects the Irregular Changes in a Time