Mathematics · Time Series Analysis
Under which of the following circumstances would a multiplicative model be preferred over an additive model in time series analysis?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1When a model easily understood by non-accountants is required
- 2When the seasonal variations increase or decrease in proportion to the trend✓
- 3When the trend is steady and seasonal variations are constant
- 4When precise calculations are not required
Correct answer
When the seasonal variations increase or decrease in proportion to the trend
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