A large automobile parts supplier keeps track of the demand for a particular part needed by its customers, automobile manufacturers. The time series plot below shows monthly demand for this part (in thousands) for a five-year period. The dominant component in this time series is
A) cyclical
B) irregular
C) seasonal
D) systematic
E) No time series component is dominant.

Question

A large automobile parts supplier keeps track of the demand for a particular part needed by its customers, automobile manufacturers. The time series plot below shows monthly demand for this part (in thousands) for a five-year period. The dominant component in this time series is 
A) cyclical 
B) irregular 
C) seasonal 
D) systematic 
E) No time series component is dominant.

Quizplus · Accepted Answer

The time series plot shows a clear pattern repeating every year. This indicates the presence of a seasonal component in the data. Therefore, choice C is the best option.

A Large Automobile Parts Supplier Keeps Track of the Demand