A bakery has experienced a slow and steady increase in demand for its products. The bakery is most likely experiencing which time series demand component?
A) Trend
B) Seasonality
C) Cyclical
D) Random variation

Question

Quizplus · Accepted Answer

A slow and steady increase in demand over time suggests that the bakery is experiencing a trend in demand, which is a long-term pattern in demand. Seasonality refers to regular, recurring patterns in demand, such as spikes during holidays or weekends. Cyclical demand patterns are longer-term, but more irregular patterns that are often tied to economic cycles. Random variation refers to unpredictable fluctuations in demand that cannot be explained by any pattern or trend.

A Bakery Has Experienced a Slow and Steady Increase in Demand