Which of the following are components of a time series?
(A) Irregular component
(B) Cyclical component
(C) Chronological Component
(D) Trend Component
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A), (B) and (D) only
The variation in a time series is split into four components: secular trend (long-term movement), seasonal variation (within a year), cyclical variation (business cycles over several years) and irregular variation (random, unpredictable effects).
So the components are trend, seasonal, cyclical and irregular; “chronological” is not one of them.
Checking the statements
(A) Irregular component — Correct. Random, unpredictable variation.
(B) Cyclical component — Correct. Up-and-down movements over several years.
(C) Chronological Component — Incorrect. Chronological order is how the data are arranged, not a component.
(D) Trend Component — Correct. The long-term general movement.