The model that assumes the time-series value at time t is the product of the four time-series components is referred to as the:
A)additive model.
B)forecast model.
C)moving averages model.
D)multiplicative model.

Question

Quizplus · Accepted Answer

The statement describes the multiplicative model. The additive model assumes that the time-series value at time t is the sum of the four time-series components. The forecast model and moving averages model are not specific models, but rather general terms used in time series analysis.

The Model That Assumes the Time-Series Value at Time T