Time series models, Mathematics

Time Series Models

Additive Model

Time series value = T +S +C +R

Whereas S, C and R are expressed in absolute value

Additive Model model is best suited where the component factors are independent for example where the seasonal variation is unaffected by trend.

Multiplicative Model:

Time series value = T × S× C × R

Whereas S, C and are expressed as proportions or percentage

Multiplicative model is best applied where characteristics interact for example where high trends increase seasonal variations. Multiplicative model is more generally used in practice. Of the four elements of time series the most significant are trend and seasonal variation. The given demonstration shows how the trend (T) and seasonal variation (S) are separated out from a time series and how the computed T and S values are used to prepare forecast. The process of separating out the trend and seasonal variation is termed as deseasonalizing the data. There are two approaches to such process: one is based on regression by the actual data points and the other calculates the regression line by moving average trend points. The method by using the actual data is verified first followed by the moving average method.

Posted Date: 2/16/2013 7:44:19 AM | Location : United States







Related Discussions:- Time series models, Assignment Help, Ask Question on Time series models, Get Answer, Expert's Help, Time series models Discussions

Write discussion on Time series models
Your posts are moderated
Related Questions
Solve the subsequent IVP. cos(x) y' + sin(x) y = 2 cos 3 (x) sin(x) - 1 y(p/4) = 3√2, 0 Solution : Rewrite the differential equation to determine the coefficient of t

Draw a line segment AB of length 4.4cm. Taking A as centre, draw a circle of radius. 2cm and taking B as centre, draw another circle of radius 2.2cm. Construct tangents to each cir


How will you use the Gantt chart for solving the sequencing problem?

Every point (x,y) on the curve y=log2 3x is transferred to a new point by the following translation (x',y')=(x+m,y+n), where m and n are integers. The set of (x',y') form the curve

What is Negative Exponents explain? Here's a problem which results in a negative exponent: 3 4 /3 7 = 3 (4-7) = 3 -3 A negative exponent means the same thing as making

Sketch the direction field for the subsequent differential equation. Draw the set of integral curves for this differential equation. Find out how the solutions behave as t → ∞ and


if 500kg of food lasts 40 days for 30 men.how many men will consume 675kg of food in 45 days.