Time-series models may exhibit seasonal effects or cyclical effects. A seasonal effect differs from a cyclical effect in that a seasonal effect:
A) has no trend, is relatively constant, and only exhibits random behavior.
B) describes ups and downs over a time frame such as several years.
C) is one that repeats at fixed intervals of time, typically a year, month, week, or day.
D) is based on analysis of historical time-series data and are predicated on the assumption that the future is an extrapolation of the past.

Question

Quizplus · Accepted Answer

Seasonal effects are patterns that repeat over specific intervals such as a year, month, week, or day, unlike cyclical effects which do not have a fixed period and can span several years.

Time-Series Models May Exhibit Seasonal Effects or Cyclical Effects