Seasonality is defined as
A) regular variation above and below the trend line with a cycle completing itself within a year
B) regular variation above and below the trend line with a cycle completing itself within a period longer than one year
C) a sudden change in process level due to a known cause
D) part of the error term

Question

Quizplus · Accepted Answer

Seasonality refers to regular variations that repeat themselves within a year, such as sales increasing during the holiday season or a decrease in ice cream sales during the winter. Therefore, choice A - "regular variation above and below the trend line with a cycle completing itself within a year" - is the best answer.

Seasonality Is Defined as