The time series component that reflects a long-term,relatively smooth pattern or direction exhibited by a time series over a long time period (more than two years)is called:
A) trend.
B) cyclical.
C) seasonal.
D) random variation.

Question

Quizplus · Accepted Answer

A trend reflects long-term changes in a time series, typically over a period of more than two years. It is often relatively smooth and consistent, indicating a general direction or pattern in the data. Cyclical patterns, on the other hand, are shorter-term fluctuations that tend to repeat themselves over time (e.g. economic cycles). Seasonal patterns reflect regular, predictable changes that occur within a year (e.g. sales spikes during the holiday season). Random variation is the unpredictable, unsystematic fluctuations that occur within a time series.

The Time Series Component That Reflects a Long-Term,relatively Smooth Pattern