# Time Series Modeling

Due Day 3

Time rotation are in-particular suited to mark variables such as revenues, costs, and profits balance interval. Interval rotation expressions aid evaluate work and create predictions. Consider the subjoined and reply in a stint of 175 words:

• Time rotation dissection seeks to severed the interval rotation (Y) into 4 components: incline (T), cycle (C), seasonal (S), and riotous (I). What is the dissimilitude among these components?
• The expression can be implied or multiplicative.When we do use an implied expression? When do we use a multiplicative expression?
• The subjoined roll gives the unseemly federal liability(in millions of dollars) for the U.S. full 5 years from 1945 to 2000:

Year    Gross Federal Liability (\$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 plant devise after a while this postulates. Do you remark a incline? If so, what expression of incline do you remark?
• Use Excel to fit a rectirectilinear incline and an exponential incline to the postulates. Display the expressions and their relative r^2.
• Interpret twain expressions. Which expression seems to be past divert? Why?