True or False A multiplicative time-series model Y = T times C times S times I b

Question

True or False A multiplicative time-series model Y = T times C times S times I becomes an additive model if we take the logarithm of each side of the equation. Additive models are most appropriate over longer periods of time or when the data magnitude is growing rapidly over time. Moving average models are causal models (as opposed to time-series models). Exponential smoothing and moving averages are especially useful for data with a clear trend. The quadratic model's R^2 is always at least as high as the linear model fitted to the same data. Over the short run, exponential and linear trends may look alike. The shape of the fitted quadratic model y_t = 544 + 62t - 3.2t^2 is declining, then rising. In exponential smoothing, using alpha = .20 will give a smoother series than using alpha = .05. The shape of the fitted exponential model y_t = 256e^-.07t is always declining. Moving averages are most useful for irregular data with no clear trend.

Explanation / Answer

Q1. True

Q2. False

Q3. True

Q4. True

Q5. True

Q6. True

Q7. False

Q8. False

Q9. False

Q10. TRue

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