A country's business activity goes through booms and slumps that repeat roughly every 7 to 10 years. Which component of a time series is this?

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

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

Cyclical variation is a wave-like rise and fall lasting more than a year, as in the business cycle.
Booms and slumps over 7 to 10 years are exactly that.

Worth noting

Seasonal variation repeats within a single year.

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

The rule this testsComponents of a time series

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A country's business activity goes through booms and slumps that repeat roughly every 7 to 10 years. Which component of a time series is this?

Explanation