Under which of the following circumstances would a multiplicative model be preferred to an additive model in time series analysis?
A、When a model easily understood by non-accountants is required
B、When the trend is increasing or decreasing
C、When the trend is steady
D、When accurate forecasts are required
A、When a model easily understood by non-accountants is required
B、When the trend is increasing or decreasing
C、When the trend is steady
D、When accurate forecasts are required
【参考答案及解析】
When the trend is increasing or decreasing, additive seasonal components change in their importance relative to the trend whereas multiplicative components remain in the same proportion to the trend. Option B is therefore a circumstance in which the multiplicative model would be preferred to the additive model.
When the trend is increasing or decreasing, additive seasonal components change in their importance relative to the trend whereas multiplicative components remain in the same proportion to the trend. Option B is therefore a circumstance in which the multiplicative model would be preferred to the additive model.