Which of the following is not a component of the time series?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Average Component
The four components of a time series are the trend (secular) component, the seasonal component, the cyclical component and the irregular (random) component.
Trend, cyclical and seasonal are among them. There is no “average component”; averages such as moving averages are only a tool for measuring the trend.