18. The cyclical component of a time series A) represents periodicfluctuations w

Question

18.

The cyclical component of a time series

A) represents periodicfluctuations which usually occur in 2 or more years.
B) is obtained by adjusting forcalendar variation.
C) is obtained by adding up theseasonal indexes.
D) represents periodicfluctuations which reoccur within 1 year.

19.

Which of the following terms describes the overall long-termtendency of a time series?

A) seasonal component
B) cyclical component
C) irregular component
D) trend

20.

Which of the following terms describes the up and down movementsof a time series that vary both in length and intensity?

A) seasonal component
B) trend
C) irregular component
D) cyclical component

Explanation / Answer

18)A) represents periodic fluctuations which usually occur in 2 ormore years. The answer is A. Because, Any recurring sequence of points above and below the trendline lasting more than one year can be attributed to the Cyclical component of the time series. 19) The answer is B). 20) The answer is B)

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