ACCA MA · Chapter 2 · Question 9 of 12
In time series analysis, which component describes long-term, wave-like movements linked to the economic or business cycle over several years?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Cyclical variations
Explanation
Cyclical variations are medium- to long-term swings caused by the business cycle and last several years. Seasonal variations repeat within a year, random variations are irregular one-off effects, and the trend is the underlying long-term direction.
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