Which one of the two time series models is appropriate for modelling monthly ice

Question

Which one of the two time series models is appropriate for modelling monthly ice cream consumption data?
   a. Y = (T x C) + I
   b. Y = T + S + I

What is the corresponding value of moving averages (M) if the value of alpha = 0.1? Write your answer as a whole number.

What is the value of alpha if the value of moving averages (M) is equivalent to 12? Round your answer to two decimal places.

If you had to model a very dynamic, non-stationary and seasonal time series, would you rather use a multiplicative or an additive seasonal model?
   a. Additive seasonal model
   b. Multiplicative seasonal model

If your average error, calculated as ME, is zero, this means that you have a perfect forecast.
   a. True
   b. False

Residuals that do not show random behavior, after you produced forecasts, indicate that the chosen model is not the best fit of the data.
   a. True
   b. False

Explanation / Answer

Answer is TRUE

Residuals that do not show random behavior, after you produced forecasts, indicate that the chosen model is not the best fit of the data.

a. True
   b. False

Because residual , if very high, means a bad fit to the data of the linear rregression line.

If residual values are low, then it means our line fit is very good.

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