A company has a monthly time series that regularly shows sales being higher in the summer months. This is an example of which component?
A) Trend
B) Seasonal
C) Cyclical
D) Random

Question

Quizplus · Accepted Answer

Seasonal components are patterns that repeat over a specific period, such as months, quarters, or years. In this case, sales being higher in the summer months is a pattern that repeats every year, making it a seasonal component.

A Company Has a Monthly Time Series That Regularly Shows