Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Time series decomposition seeks to separate the time series (Y) into 4 components: trend (T), cycle (C), seasonal (S), and irregular (I). What is the
- Time series decomposition seeks to separate the time series (Y) into 4 components: trend (T), cycle (C), seasonal (S), and irregular (I). What is the difference between these components?
- The model can be additive or multiplicative. When we do use an additive model? When do we use a multiplicative model?
- The following list gives the gross federal debt(in millions of dollars) for the U.S. every 5 years from 1945 to 2000:
YearGross Federal Debt ($millions)
1945260,123
1950256,853
1955274,366
1960290,525
1965322,318
1970380,921
1975541,925
1980909,050
19851,817,521
19903,206,564
19954,921,005
20005,686,338
- Construct a scatter plot with this data. Do you observe a trend? If so, what type of trend do you observe?
- Use Excel to fit a linear trend and an exponential trend to the data. Display the models and their respective r^2.
- Interpret both models. Which model seems to be more appropriate? Why?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started