Which of the following are the components of a time series?
(A) Cyclic component
(B) Regular component
(C) Seasonal component
(D) Economic component
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A) and (C) only
A time series has four components: secular trend, seasonal variations, cyclic variations and irregular (random) variations.
(A) Cyclic component — Correct. Cyclic variations are the up-and-down swings over periods longer than a year, such as business cycles.
(B) Regular component — Incorrect. There is no “regular” component; the fourth component is the irregular one.
(C) Seasonal component — Correct. Seasonal variations repeat within a year, such as higher sales before festivals.
(D) Economic component — Incorrect. This is not one of the four components.
CBSE Applied Mathematics (Class XII):
Index Numbers and Time Based Data
