Question
How does seasonal component differ from the cyclical component ?
| Point of Difference | Seasonal Component | Cyclical Component |
| $1.$ Meaning | The changes taking place in the variable quantity $y_t$ of time series at fixed period of time in the year say winter, summer, monsoon is called seasonal component. | The fluctuations arising due to boom and recession or business cycles are called cyclical component. |
| $2.$ Regularity | Regularity is seen in seasonal component. | Regularity is not seen in cyclical component as compared to seasonal component. |
| $3.$ Period of Oscillation | The period of oscillation of such variations is usually less than a year. | The period of oscillation of these variations can be $2$ to $10$ years and in specific circumstances it can also be $10-15$ years. |
| $4.$ Symbol | We denote this component of the time series by $S_t$. | We denote this component of the time series by $C_t$. |
| $5.$ Calculation | It is easy to obtain seasonal component. | It is mathematical complicated to obtain cyclical component. |
| $6.$ Example | The demand of woollens Increases in winter, the demand of cold drinks and ice-creams increases in summer, the demand of umbrellas or raincoat increase in monsoon, the increase in sales of readymade garments or footwears in any festivals are the examples of seasonal components. | The cycles of boom and recession, variation found in the time series of trade and financial matters. |
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