The patterns and behavior of the data in any time series are based on which of the following components.
A. Seasonal component
B. Secular trend component
C. Irregular component
D. Cyclical component
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → A, B, C and D
A time series is described by four components: the secular trend, seasonal variations, cyclical variations and irregular variations. Together they make up the pattern of the data.
So all four components, seasonal, secular trend, irregular and cyclical, shape the pattern of a time series.
Checking the statements
(A) Seasonal component — Correct. Regular variations that repeat within a year (festivals, weather).
(B) Secular trend component — Correct. The long-term general tendency to rise, fall or stay steady.
(C) Irregular component — Correct. Random, unpredictable changes caused by events such as floods or strikes.
(D) Cyclical component — Correct. Oscillations over periods longer than a year, such as business cycles.
CBSE Applied Mathematics (Class XII):
Index Numbers and Time Based Data
