A Large Automobile Parts Supplier Keeps Track of the Demand

question 1

Multiple Choice

A large automobile parts supplier keeps track of the demand for a particular part needed by its customers, automobile manufacturers. The time series plot below shows monthly demand for this part (in thousands) for a five-year period. The dominant component(s) in this time series is(are)

• A) cyclical.
• B) irregular.
• C) seasonal and trend.
• D) cyclical and irregular.
• E) No time series component is dominant. The time series is random walk.

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