Which of the following are the methods of measuring trends of time series?
(A) Graphical method
(B) Method of least squares
(C) Method of cyclic component
(D) Moving averages method
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (A), (B) and (D) only
The trend of a time series is measured by the graphical (freehand) method, the semi-average method, the method of moving averages and the method of least squares.
So the graphical method, least squares and moving averages are methods of measuring trend; the cyclic component is a component of a time series, not a method.
Checking the statements
(A) Graphical method — Correct. The trend is read from a freehand curve drawn through the plotted values.
(B) Method of least squares — Correct. The trend is the line (or curve) of best fit.
(C) Method of cyclic component — Incorrect. The cyclic component is a part of a time series, not a method of measuring trend.
(D) Moving averages method — Correct. Averages over a fixed period smooth out the fluctuations.
CBSE Applied Mathematics (Class XII):
Trend Analysis
