When a time series is analyzed by the model y_t = T_t × S_t × I_t and the trend component T_t is set to be the centered moving average ,which of the following remains to be estimated? A) S_t × I_t B) T_t × S_t C) T_t × I_t D) S_t/ I_t

Question

Quizplus · Accepted Answer

The trend component T_t has already been specified as the centered moving average, so it does not need to be estimated again. S_t refers to the seasonal component and I_t refers to the irregular component, and these still need to be estimated. Therefore, the correct choice is A) S_t × I_t.

When a Time Series Is Analyzed by the Model Yt

When a Time Series Is Analyzed by the Model Y_t