Question

Match List-I with List-II \[\begin{array}{|c|c|} \hline \textbf{Categories of Time Series Patterns} & \textbf{Their meaning} \\ \hline \text{(A) Seasonal Variation} & \text{(I) movement in an economic variable that is periodic.} \\ \hline \text{(B) Random Fluctuation} & \text{(II) steady movement in an economic variable over time.} \\ \hline \text{(C) Business Cycles} & \text{(III) movement in an economic variable that depends on the time of the year.} \\ \hline \text{(D) Trends} & \text{(IV) movement in an economic variable that are due to unpredictable factors.} \\ \hline \end{array}\] Choose the correct answer from the options given below:

• (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
• (A) - (I), (B) - (IV), (C) - (II), (D) - (III)
• (A) - (III), (B) - (II), (C) - (IV), (D) - (I)
• (A) - (II), (B) - (III), (C) - (I), (D) - (IV)

Hint:

Understanding time series patterns helps in forecasting economic trends, cycles, and seasonal behaviors in the market.

Answer 1

The Correct Option is B

Phase 1: Analysis of Time Series Components.
- Seasonality (A): Identifies recurring, predictable patterns at fixed intervals, commonly annual. This aligns with (I).
- Irregular Component (B): Encompasses unpredictable data variations not attributable to trends or cycles. This corresponds to (IV).
- Cyclical Patterns (C): Refers to expansions and contractions in economic activity over extended periods. This matches (II).
- Trend (D): Denotes the sustained long-term movement in data, either increasing or decreasing. This correlates with (III).

Phase 2: Determination.
The definitive pairings are: (A) with (I), (B) with (IV), (C) with (II), and (D) with (III).