The overall upward or downward pattern of the data in an annual time series will be contained in which component of the time series?
A)Long-term trend
B)Cyclical variation
C)Seasonal variation
D)Random variation

Question

Quizplus · Accepted Answer

The long-term trend component of the time series contains the overall upward or downward pattern of the data over a period of several years or decades. It reflects the underlying changes in the data due to factors such as demographic shifts, economic growth, and technological advances. The cyclical variation reflects the regular up-and-down fluctuations in the data that occur over a period of several years, while the seasonal variation reflects the regular pattern of fluctuations that occur within a year, such as the seasonal changes in sales of a product. The random variation reflects the unpredictable fluctuations that are not due to any identifiable pattern or cause.

The Overall Upward or Downward Pattern of the Data in an Annual