The model that assumes that the actual time series value is the product of its components is the _____ time series model.
A) forecast
B) multiplicative
C) additive
D) horizontal

Question

Quizplus · Accepted Answer

The multiplicative time series model assumes that the actual time series value is the product of its components, including seasonality, trend, and error terms. This is in contrast to the additive time series model, which assumes that the actual time series value is the sum of its components. Therefore, the best choice is (B) multiplicative.

The Model That Assumes That the Actual Time Series Value