The rise in prices before Diwali is an example of
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Seasonal trend
Seasonal variations are movements in a time series that repeat in a regular way within a year, caused by the seasons, festivals and customs.
Prices rise before Diwali every year, at the same time of the year, because of festival demand. So this is a seasonal movement.
It is not cyclical (cycles last more than a year, like booms and depressions), not long-term (a steady movement over many years) and not irregular (an unpredictable event such as a flood or a strike).
CBSE Applied Mathematics (Class XII):
Time Series Analysis
