THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The table below is the data set of the Shiller Real Home Price Index for the years 1894-1904.
Use a smoothing constant of α = 0.8 to determine the forecasts using simple exponential smoothing.

-The time series that reflects a wavelike pattern describing a long-term trend that is generally apparent over a number of years is called the:
A)trend component.
B)cyclical component.
C)seasonal component.
D)irregular component.

Question

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The table below is the data set of the Shiller Real Home Price Index for the years 1894-1904.
Use a smoothing constant of α = 0.8 to determine the forecasts using simple exponential smoothing.
 
-The time series that reflects a wavelike pattern describing a long-term trend that is generally apparent over a number of years is called the:
A)trend component. 
B)cyclical component. 
C)seasonal component. 
D)irregular component.

Quizplus · Accepted Answer

The cyclical component of a time series reflects a wavelike pattern that describes a long-term trend, typically apparent over several years, distinguishing it from more short-term fluctuations like seasonal or irregular components.