Which of the following are true of the secular trend?
I. It describes the long-term movement of the series.
II. It shows the smooth general direction, ignoring short ups and downs.
III. It repeats within each year.
IV. It may be rising, falling or steady.

All four: I, II, III and IVCorrect answerYour answerI and II onlyCorrect answerYour answerI, II and IV onlyCorrect answerYour answerII and IV onlyCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

The trend is the long-run, smoothed direction of a series, upward, downward or flat.
III describes seasonal variation, not the trend.

Concept: Secular trend
Typical timeTypical: 120 s
Your timeYours: —

The rule this testsComponents of a time series

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Which of the following are true of the secular trend?I. It describes the long-term movement of the series.II. It shows the smooth general direction, ignoring short ups and downs.III. It repeats within each year.IV. It may be rising, falling or steady.

Explanation

Which of the following are true of the secular trend?
I. It describes the long-term movement of the series.
II. It shows the smooth general direction, ignoring short ups and downs.
III. It repeats within each year.
IV. It may be rising, falling or steady.