Time-Series Models May Exhibit Seasonal Effects or Cyclical Effects

question 8

Multiple Choice

Time-series models may exhibit seasonal effects or cyclical effects. A seasonal effect differs from a cyclical effect in that a seasonal effect:

• A) has no trend, is relatively constant, and only exhibits random behavior.
• B) describes ups and downs over a time frame such as several years.
• C) is one that repeats at fixed intervals of time, typically a year, month, week, or day.
• D) is based on analysis of historical time-series data and are predicated on the assumption that the future is an extrapolation of the past.

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Definitions:

Unstructured

Lacking a predefined data model or organization, often referring to information or processes.

Factual Information

Data and details that are true and can be verified, not based on feelings or opinions.

Uncertain Environment

A condition in which there is a lack of predictability or stability in the external or internal environment, affecting organizational strategies and decisions.

Intuition

The ability to understand or know something immediately, without the need for conscious reasoning or analysis.