The effect of an unpredictable,rare event will be contained in which component of the time series?

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

Question

The effect of an unpredictable,rare event will be contained in which component of the time series?A) Long-term trendB) Cyclical variationC) Seasonal variationD) Random Variation

Melanie Deguzman · Accepted Answer

Final Answer : D, Explanation :  A rare and unpredictable event is likely to be captured in the random variation component of a time series as it represents the residual variation that cannot be explained by the other components. The other components (long-term trend, cyclical variation, and seasonal variation) are typically affected by more predictable and systematic factors.

The effect of an unpredictable,rare event will be contained in which component of the time series?

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

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