In which of the following, the time series may show the gradual shifts to relatively higher or lower values over a long period of time?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Trend component
The trend component is the general tendency of a time series to rise or fall gradually over a long period.
The other components are short-term or repeating: cyclical variations are up-and-down swings over several years (business cycles), seasonal variations repeat within a year, and irregular variations are random, unpredictable movements.
CBSE Applied Mathematics (Class XII):
Time Series Analysis
