A stockbroker at a large brokerage firm recently analyzed the combined annual profits for all firms in the airline industry. One time-series component that may have been present in these annual data was a seasonal component.

Question

Quizplus · Accepted Answer

Seasonal components are patterns that repeat over a specific period, such as quarters or months, within a year. The combined annual profits for all firms in the airline industry would not exhibit a seasonal component because seasonal variations are observed within a year, not from year to year.

A Stockbroker at a Large Brokerage Firm Recently Analyzed the Combined