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Consider the monthly champagne sales data . a. Make a time series plot. Describe

ID: 3066644 • Letter: C

Question

Consider the monthly champagne sales data .

a. Make a time series plot. Describe with a couple of sentences.

Is there a trend? Is there a seasonal pattern and which type?

As you can see I already did the plot. I just need help with the interpreting if there is a trend or seasonal pattern

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Explanation / Answer

This is a seasonal pattern.

The difference is that in seasonal pattern the period between succesive peaks (or troughs) is constant (eg. umbrella demand will rise in rainy season, and will fall otherwise).
But in trends the distance between successive peaks is irregular (eg. 1 years of economic growth, followed by 2 years of economic recession, followed be 4 years of economic growth followed by 1 year of economic recession etc.)