Match the components of time series with the examples associated to them.
Match List-I with List-II
| List-I | List-II | ||
| (A) | Secular Trend | (I) | Monthly sale of soft drink increases in summer |
| (B) | Seasonal variations | (II) | Rise and fall of the share market |
| (C) | Cyclic Variations | (III) | Data regarding national income |
| (D) | Irregular Variations | (IV) | Sudden fall in crop yield due to floods |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A) - (III), (B) - (I), (C) - (II), (D) - (IV)
Each component of a time series is identified by how long its movement lasts and whether it can be predicted.
(A) Secular Trend
This matches (III) Data regarding national income: the secular trend is the long-term general rise or fall over many years, as in national income.
(B) Seasonal variations
This matches (I) Monthly sale of soft drink increases in summer: seasonal variations repeat within a year, with the seasons.
(C) Cyclic Variations
This matches (II) Rise and fall of the share market: cyclic variations are the up-and-down swings of business cycles, lasting more than a year.
(D) Irregular Variations
This matches (IV) Sudden fall in crop yield due to floods: irregular variations are caused by unpredictable events such as floods, wars or strikes.
So the matching is (A)-(III), (B)-(I), (C)-(II), (D)-(IV).