If Data for a Time Series Analysis Are Collected on a Monthly

question 147

Multiple Choice

If data for a time series analysis are collected on a monthly basis only,which component of the time series may be ignored?

• A)Long-term trend
• B)Cyclical variation
• C)Seasonal variation
• D)Random variation

---

Definitions:

Disposable Income

The budgetary provision for households for saving and spending after income taxes have been processed.

APS

Acute Psychological Stress, referring to the significant mental stress an individual experiences in response to a perceived threatening situation.

Disposable Income

Financial avenues open to households for spending and saving, post income tax deductions.

MPS

Marginal Propensity to Save, which is the fraction of additional income that a household saves rather than spends on consumption.