The multiplicative model of the time series with the components $T, S, C$ and $I$ is : (a) $y = T + S \times C \times I$ (b) $y = T \times S \times C \times I$ (c) $y = T + S \times C + I$ (d) $y = T + S + C + I$

The multiplicative model of the time series with the components T, S, C and I is : (a) y = T + S × C × I (b) y

Question 14 of 39

T, S, C

(a)

y = T + S \times C \times I

(b)

y = T \times S \times C \times I

(c)

y = T + S \times C + I

(d)

y = T + S + C + I

Puducherry TnboardTamil Nadu HSC (DGE) Commerce Board 2020MCQ· 1mImportance★★★★★

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The multiplicative time-series model treats the observed value as the product of Trend ( $T$ ), Seasonal ( $S$ ), Cyclical ( $C$ ) and Irregular ( $I$ ) components: $y = T \times S \times C \times I$ .

Reasoning. A time series has four components — Trend $T$ , Seasonal $S$ , Cyclical $C$ , and Irregular $I$ . There are two standard models:

Additive model: $y = T + S + C + I$ (used when components are independent of the trend level). …

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Concept understanding — Components of a Time Series

Q.The multiplicative model of the time series with the components T,S,CT, S, CT,S,C and III is :

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Q.The multiplicative model of the time series with the components $T, S, C$ and $I$ is :

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