A factory's output drops sharply one month because a flood cuts it off. Which component of a time series is this?

Secular trendCorrect answerYour answerIrregular variationCorrect answerYour answerSeasonal variationCorrect answerYour answerCyclical variationCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

Irregular variation comes from unforeseen, one-off events such as floods, strikes or wars.
It follows no pattern and cannot be predicted.

Worth noting

A flood may come in the rainy season, but this drop is not a yearly pattern, so it is not seasonal.

Concept: Irregular variation
Typical timeTypical: 90 s
Your timeYours: —

The rule this testsComponents of a time series

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A factory's output drops sharply one month because a flood cuts it off. Which component of a time series is this?

Explanation