Which of the following terms describes the overall long-term tendency of a time series?
A) Seasonal component
B) Cyclical component
C) Trend
D) Irregular component

Question

Quizplus · Accepted Answer

The trend is the overall long-term tendency of a time series. It describes the underlying pattern that may persist for several years or decades. The seasonal component refers to the regular pattern of high and low values related to calendar periods (e.g., months, seasons), while the cyclical component refers to the irregular pattern of rises and falls that do not follow a fixed pattern. The irregular component is the random variation that cannot be explained by the known components.

Which of the Following Terms Describes the Overall Long-Term Tendency