is the multiplicative skantity for the sectional
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Answer:
Here we will discuss about multiplicative and additive model.
The analysis of a time series is the decomposition of a time series into its different components for their separate study. The process of analyzing a time series is to isolate and measure its various components. We try to answer the following questions when we analyze a time series.
What would have been the value of the variable at different points of time if it were influenced only be long time movements?
What changes occur in the value of the variable due to seasonal variations?
To what extent and in what direction has the variable been effected by cyclical fluctuations?
What has been the effect of irregular variations?
The study of a time series is mainly required for estimation and forecasting. An ideal forecast should base on forecasts of the various types of fluctuations. Separate forecasts should be made of the trend, seasonal and cyclical variations. These forecasts become doubtful for a forecast of irregular movements. Therefore, it is necessary to separate and measure various types of fluctuations present in a time series.
A value of a time series variable considered as the resultant of the combined impact of its components. The components of a time series follow either the multiplicative or the additive model.
Step-by-step explanation: