The effect that business recessions and prosperity have on time series values is an example of the disaster component of a time series.

Question

Quizplus · Accepted Answer

The effect of business recessions and prosperity on time series values is an example of the cyclical component of a time series, not the disaster component. The disaster component refers to unexpected and rare events such as natural disasters, terrorist attacks, or other catastrophes that can have a sudden and extreme impact on the time series.

The Effect That Business Recessions and Prosperity Have on Time