Use the following to answer the question below.
The time series graph below shows monthly sales figures for a specialty gift item sold on the Home Shopping Network (HSN).
-The dominant time series component in these data is
A) cyclical.
B) seasonal.
C) random walk.
D) irregular.
E) index numbers.

Question

Use the following to answer the question below.
The time series graph below shows monthly sales figures for a specialty gift item sold on the Home Shopping Network (HSN). 
-The dominant time series component in these data is
A) cyclical. 
B) seasonal. 
C) random walk. 
D) irregular. 
E) index numbers.

Quizplus · Accepted Answer

The graph shows clear patterns of seasonality, with spikes in sales occurring around the same time each year (presumably during gift-giving holidays). There is not sufficient evidence of cyclical patterns, a random walk, irregularity, or the use of index numbers in this time series.

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