A time series plot of a period of time (quarterly) versus quarterly sales (in $1,000s) is shown below. Which of the following data patterns best describes the scenario shown?
A)Linear trend and cyclical pattern
B)Linear trend and horizontal pattern
C)Seasonal and cyclical patterns
D)Seasonal pattern and linear trend

Question

A time series plot of a period of time (quarterly) versus quarterly sales (in $1,000s) is shown below. Which of the following data patterns best describes the scenario shown? 
A)Linear trend and cyclical pattern 
B)Linear trend and horizontal pattern 
C)Seasonal and cyclical patterns 
D)Seasonal pattern and linear trend

Quizplus · Accepted Answer

The plot shows a clear seasonal pattern with sales peaking in Q4 and dropping in Q1, followed by a linear trend of increasing sales over time. There is no noticeable cyclical pattern. Therefore, the best choice is D, seasonal pattern and linear trend.

A Time Series Plot of a Period of Time (Quarterly)