The time series component that reflects the irregular changes in a time series that are not caused by any other component,and tends to hide the existence of the other more predictable components,is called:
A)long-term trend
B)cyclical variation
C)seasonal variation
D)random variation

Question

Quizplus · Accepted Answer

The random variation is also known as the residual component, which represents the unpredictable and irregular part of a time series that cannot be explained by any other component. It tends to obscure the underlying patterns and relationships within the data, making it difficult to identify the other more predictable components such as trend, seasonality, and cycle. Therefore, option D - random variation is the correct answer.

The Time Series Component That Reflects the Irregular Changes in a Time