i. Many business and economic time series have a recurring seasonal pattern.
ii. One component of a time series is cyclical variation. An example of cyclical variation is the business cycle that consists of periods of prosperity followed by periods of recession, depression, and recovery.
iii. Episodic and residual variations can be projected into the future.
A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question

i. Many business and economic time series have a recurring seasonal pattern. 
ii. One component of a time series is cyclical variation. An example of cyclical variation is the business cycle that consists of periods of prosperity followed by periods of recession, depression, and recovery.
iii. Episodic and residual variations can be projected into the future.
A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Quizplus · Accepted Answer

Statements (i) and (ii) are correct, as seasonal patterns and cyclical variations are common components of economic time series. However, statement (iii) is not correct since episodic and residual variations are typically considered to be unpredictable and cannot be reliably projected into the future.

I Many Business and Economic Time Series Have a Recurring