Question

Which of the following statements are correct?
(A) When a cyclical pattern in data has a period of less than 1 year, the pattern in data is called seasonal variation
(B) When a cyclical pattern has a period more than 1 year, we refer to it as cyclical variation
(C) Seasonality is considered equivalent to forecasting
(D) Cyclical behaviour in business is also termed as business cycle

• A. (A), (B) and (D) only
• B. (A) and (C) only
• C. (A), (B), (C) and (D)
• D. (B), (C) and (D) only

Hint:

Seasonal vs cyclical: Seasonal is short-term (<1 year), cyclical is long-term (>1 year).

Answer 1

The Correct Option is A

Step 1: Analyze each statement.
- (A) Seasonal variation → correct, period<1 year
- (B) Cyclical variation → correct, period>1 year
- (C) Incorrect, seasonality is not forecasting
- (D) Cyclical behaviour = business cycle → correct