Question 16
EasyOriginal questionA two-wheeler maker studies its monthly sales from 2010 to 2025. It notes four features: sales jump every October and November in the festival season; over the fifteen years they climb steadily as incomes rise; they sag for two or three years at a stretch when the wider economy slows, then recover; and they collapsed in April 2020 when a nationwide lockdown shut its showrooms.
Which component is the collapse in the two-wheeler maker's sales in April 2020?
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
It was caused by a one-off event that could not have been foreseen from the pattern.
That is irregular variation.
Worth noting
It is not cyclical: it did not grow out of the business cycle.
- Concept
- Irregular variation
- Typical timeTypical
- 90 s
- Your timeYours
- —
Practise this chapter →
Ten questions from Time Series & Trend, at your own pace.