Question:
Which method of measurement of cyclical variation consists of eliminating seasonal variation and trend, for obtaining the cyclical irregularities?
Which method of measurement of cyclical variation consists of eliminating seasonal variation and trend, for obtaining the cyclical irregularities?
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Residual method is the simplest way to study cyclical variations after removing trend and seasonality.
Updated On: Feb 18, 2026
- Residual Method
- Reference Cycle analysis method
- Direct Method
- Harmonic Analysis Method
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The Correct Option is A
Solution and Explanation
Step 1: Identify method function.
- Residual Method: Removes trend and seasonal variation → isolates cyclical component
- Reference cycle, direct, harmonic: other methods, do not isolate residuals in this way
- Residual Method: Removes trend and seasonal variation → isolates cyclical component
- Reference cycle, direct, harmonic: other methods, do not isolate residuals in this way
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