On which of the following components, the pattern and behavior of the data in any time series is based?
(A). Secular trend component
(B). Seasonal component
(C). Cyclical component
(D). Regular component
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A), (B) and (C) only
The movements of a time series are described by four components: secular trend, seasonal variation, cyclical variation and irregular (random) variation.
(A) Secular trend component — Correct. It is the long-term upward or downward movement of the series.
(B) Seasonal component — Correct. It covers the short-term fluctuations that repeat within a year.
(C) Cyclical component — Correct. It covers the oscillations over periods longer than a year, such as business cycles.
(D) Regular component — Incorrect. There is no “regular” component. The fourth component is the irregular component, which follows no pattern.
CBSE Applied Mathematics (Class XII):
Time Series Analysis
