ACCA Performance Management (F5) Certification Practice Exam

Which of the following is NOT a component of time series analysis?

1. Seasonal variations

2. Random variations

3. Market share analysis

4. Cyclical variations

The correct answer is: Market share analysis

Time series analysis involves examining data points collected or recorded at specific time intervals to identify trends, variations, and patterns within the data over time. The key components typically analyzed in time series are: 1. **Seasonal variations**: These represent fluctuations in data that occur at specific regular intervals, often linked to the calendar, such as sales peaks during the holiday season. 2. **Random variations**: This component refers to unpredictable fluctuations that cannot be attributed to any specific cause or pattern, making them difficult to forecast. 3. **Cyclical variations**: These are long-term fluctuations that occur in a cycle related to economic or business conditions, which can vary in length and are not fixed in period like seasonal variations. Market share analysis, however, is not a component of time series analysis. Rather, it focuses on assessing a company's share of the total market for a particular product or service, often comparing it to competitors and does not inherently involve analyzing how data behaves over time. Therefore, this option does not fit within the typical framework of time series analysis components.