Which of the following statements are correct?
(A) The rise in prices before Diwali is an example of a seasonal trend.
(B) For the given four values 15, 24, 18, 33, the three-year moving averages are 19, 25.
(C) The rise and fall of the share market is an example of seasonal trend.
(D) Decrease in production of a product due to a sudden strike is an example of an irregular trend.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A), (B), and (D) only
The three-year moving averages of 15, 24, 18, 33 are
\( \displaystyle \frac{15+24+18}{3}=19 \)
\( \displaystyle \frac{24+18+33}{3}=25 \)
So the moving averages are 19 and 25; a change that repeats at the same time every year is seasonal, and one caused by a sudden event is irregular.
Checking the statements
(A) The rise in prices before Diwali is an example of a seasonal trend. — Correct. A festival effect that repeats every year is seasonal.
(B) For the given four values 15, 24, 18, 33, the three-year moving averages are 19, 25. — Correct. The averages are 57/3 = 19 and 75/3 = 25.
(C) The rise and fall of the share market is an example of seasonal trend. — Incorrect. Share prices have no fixed yearly pattern.
(D) Decrease in production of a product due to a sudden strike is an example of an irregular trend. — Correct. A sudden strike is an irregular variation.