THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The table below is the data set of the Shiller Real Home Price Index for the years 1894-1904.
Use a smoothing constant of α = 0.8 to determine the forecasts using simple exponential smoothing.

-The component in a time series that reflects a long-term,relatively smooth pattern or direction exhibited by a time series over a long time period (more than one year) is called the:

A) trend component.
B) cyclical component.
C) seasonal component.
D) irregular component.