Which trend is described as a pattern that tends to repeat every few years?

A cyclical trend refers to a pattern in data that occurs over a span of several years, characterized by fluctuations that follow a recurring cycle. This type of trend is often influenced by economic or market forces, such as boom and bust cycles, and typically spans longer periods than seasonal trends, which are tied to specific seasons or timeframes within a year.

For instance, certain industries may experience increased demand during economic expansions and decreased demand during recessions, reflecting this cyclical behavior. Understanding cyclical trends is crucial for businesses as it helps in forecasting and preparing for various economic conditions over time.

In contrast, a random trend involves variations that occur without any discernible pattern, a seasonal trend refers to fluctuations that happen at specific periods within the year, and a linear trend shows a consistent, straight-line increase or decrease in data. These differing characteristics highlight why cyclical trends are uniquely defined by their repeating patterns over several years, making them vital for long-term strategic planning in business operations.