The pattern and behavior of the data in any time series are based on which of the following components:
(A) Secular trend component
(B) Seasonal component
(C) Cyclical component
(D) Irregular component
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A), (B), (C) and (D)
A time series is the combined result of four components: secular trend (T), seasonal variation (S), cyclical variation (C) and irregular variation (I). In the multiplicative model \(Y = T \times S \times C \times I\); in the additive model \(Y = T + S + C + I\).
(A) Secular trend component — Correct. The long-term upward or downward movement of the series.
(B) Seasonal component — Correct. Regular changes that repeat within a year (with seasons, festivals, customs).
(C) Cyclical component — Correct. Up-and-down swings over periods longer than a year, such as business cycles.
(D) Irregular component — Correct. Random, unpredictable changes caused by chance events.
CBSE Applied Mathematics (Class XII):
Time Series Analysis
