Question

Which method of measurement of cyclical variation consists of eliminating seasonal variation and trend, for obtaining the cyclical irregularities?

• A. Residual Method
• B. Reference Cycle analysis method
• C. Direct Method
• D. Harmonic Analysis Method

Hint:

Residual method is the simplest way to study cyclical variations after removing trend and seasonality.

Answer 1

The Correct Option is A

Step 1: Identify method function.
- Residual Method: This method isolates the cyclical component by removing trend and seasonal variations.
- Reference cycle, direct, and harmonic methods: These alternative methods do not isolate residuals in the same manner.