The model y_t = T_t + C_t + S_t + R_t + $\varepsilon$_t that assumes the time series value at time t is the sum of the four time series components T_t,C_t,S_t,and R_t is referred to as: A) additive model B) multiplicative model C) moving averages model D) forecast model

Question

Quizplus · Accepted Answer

The model described is an additive model, as it assumes that the value at time t is the sum of the four components. In contrast, a multiplicative model would assume that the value at time t is the product of the four components. The other two choices, moving averages and forecast models, are not applicable as they do not describe the specific structure of the model.

The Model Yt = Tt + Ct + St ε\varepsilonε t That Assumes the Time Series Value at Time T

The Model Y_t = T_t + C_t + S_t $\varepsilon$ _t That Assumes the Time Series Value at Time T