A seasonal component differs from a cyclical component in that the seasonal component ________.
A) is difficult to capture with historical data
B) refers to fluctuations that may last more than a year
C) represents wavelike fluctuations caused by business cycles
D) represents some regular repetitions within a one-year period

Question

Quizplus · Accepted Answer

A seasonal component represents some regular repetitions within a one-year period, while a cyclical component refers to fluctuations that may last more than a year and represents wavelike fluctuations caused by business cycles. Historically data can be used to capture both seasonal and cyclical components.

A Seasonal Component Differs from a Cyclical Component in That