The effect that business recessions and prosperity have on time series values is an example of the:
A) irregular component.
B) trend component.
C) seasonal component.
D) cyclical component.

Question

Quizplus · Accepted Answer

Business recessions and prosperity are examples of the cyclical component of a time series, which represents the regular, periodic fluctuations in the data that occur at intervals longer than a year. The irregular component refers to unpredictable, one-time events that do not follow a pattern. The trend component represents the long-term direction of the data, while the seasonal component refers to regular patterns that occur within a year, such as the spike in retail sales during the holiday season.

The Effect That Business Recessions and Prosperity Have on Time