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7. Which of the following statements are accurate for the S&P data? (Check any a

ID: 3060613 • Letter: 7

Question

7. Which of the following statements are accurate for the S&P data? (Check any as appropriate.)

a. The S&P data exhibit trend.

b. The S&P data exhibit seasonality.

c. The S&P data exhibit cyclicality.

d. We would use all 10 years of the S&P data to forecast the S&P values for the next year.

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Explanation / Answer

Appropriate options that hold true: Options a, b and c

The data exhibits an average upwards trend, with seasonality in periods smaller than a year, and cycliacality in the long run as observed by the dip around 2008.

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