Time series are particularly useful to track variables such as revenues, costs, and profits over time. Time series models help evaluate performance and make predictions. Consider the following and...

Time series are particularly useful to track variables such as revenues, costs, and profits over time. Time series models help evaluate performance and make predictions.

Consider the following and respond in a minimum of 175 words:

·Time series decomposition seeks to separate the time series (Y) into 4 components: trend (T), cycle (C), seasonal (S), and irregular (I). What is the difference between these components?

·The model can be additive or multiplicative. When do we use an additive model? When do we use a multiplicative model?

·The following list gives the gross federal debt (in millions of dollars) for the U.S. every 5 years from 1945 to 2000:

YearGross Federal Debt ($millions)

1945260,123

1950256,853

1955274,366

1960290,525

1965322,318

1970380,921

1975541,925

1980909,050

19851,817,521

19903,206,564

19954,921,005

20005,686,338

·Construct a scatter plot with this data. Do you observe a trend? If so, what type of trend do you observe?

·Use Excel to fit a linear trend and an exponential trend to the data. Display the models and their respective r^2.

·Interpret both models. Which model seems to be more appropriate? Why?

·Provide an example from your personal or professional life where time series data can be useful.

Time series are particularly useful to track variables such as revenues, costs, and profits over time. Time series models help evaluate performance and make predictions. Consider the following and respond in a minimum of 175 words: Please include in-text citations and references for the initial response to the discussion question and all cited material. ·      Time series decomposition seeks to separate the time series (Y) into 4 components: trend (T), cycle (C), seasonal (S), and irregular (I). What is the difference between these components? ·      The model can be additive or multiplicative. When do we use an additive model? When do we use a multiplicative model? ·      The following list gives the gross federal debt (in millions of dollars) for the U.S. every 5 years from 1945 to 2000: Year    Gross Federal Debt ($millions) 1945    260,123 1950    256,853 1955    274,366 1960    290,525 1965    322,318 1970    380,921 1975    541,925 1980    909,050 1985    1,817,521 1990    3,206,564 1995    4,921,005 2000    5,686,338 ·      Construct a scatter plot with this data. Do you observe a trend? If so, what type of trend do you observe? ·      Use Excel to fit a linear trend and an exponential trend to the data. Display the models and their respective r^2. ·      Interpret both models. Which model seems to be more appropriate? Why? ·      Provide an example from personal or professional life where time series data can be useful.