Sta1504
Assignment 2
Question 1
1a)
Expression for Aditive model is as follows:
Here,
Time series data represented by Y.
Trend Component is represented by T.
Seasonal Component is represented by S.
Cyclical Component is represented by C.
Irregular Component is represented by I.
Expression for Multiplicative model is as follows:
-------------------------------------------------------------------------------------------------------------------------------
The additive model is useful when the seasonal variation is relatively constant
over time.
The multiplicative model is useful when the seasonal variation increases over
time.
1b)
Holts trend corrected exponential smoothing:
It is an extension of Simple Exponential Smoothing method. Holt extended exponential
smoothing method to allow forecasting the data with trend.
The time series data which shows only trend pattern is appropriate to use for Holts
trend corrected exponential smoothing.
Assignment 2
Question 1
1a)
Expression for Aditive model is as follows:
Here,
Time series data represented by Y.
Trend Component is represented by T.
Seasonal Component is represented by S.
Cyclical Component is represented by C.
Irregular Component is represented by I.
Expression for Multiplicative model is as follows:
-------------------------------------------------------------------------------------------------------------------------------
The additive model is useful when the seasonal variation is relatively constant
over time.
The multiplicative model is useful when the seasonal variation increases over
time.
1b)
Holts trend corrected exponential smoothing:
It is an extension of Simple Exponential Smoothing method. Holt extended exponential
smoothing method to allow forecasting the data with trend.
The time series data which shows only trend pattern is appropriate to use for Holts
trend corrected exponential smoothing.
