Which of the following statements are TRUE? (A) The sales of woolen c…

The correct answer is Option (3) → (A) and (C) only

The movements in a time series are of four kinds:

    Secular trend: the steady long-term rise or fall.
    Seasonal variation: a regular pattern repeating within a year, caused by seasons, festivals and customs.
    Cyclical variation: an up-and-down movement with a period of more than a year, such as boom and depression.
    Irregular variation: unpredictable changes caused by floods, strikes and similar events.

So movements tied to seasons and festivals are seasonal, boom-and-slump movements are cyclical, and only unforeseen shocks are irregular.

Checking the statements

(A) The sales of woolen clothes, gold, silver etc. exhibit seasonal trends. — Correct. Woollens sell in winter and gold and silver in the wedding and festival seasons, every year.

(B) The price of stocks in the share market repeats after a definite time interval. — Incorrect. Share prices rise and fall, but not with a fixed period.

(C) The rise and fall of the share market is an example of a cyclic trend. — Correct. Market booms and slumps are up-and-down movements lasting more than a year.

(D) The rise in prices before festivals is an example of an irregular trend. — Incorrect. It recurs at the same time every year, so it is seasonal.