Over long periods of time, multiplicative time-series models may be favored over additive time-series models, because the data magnitude often changes over time.

Question

Quizplus · Accepted Answer

Multiplicative models account for changes in data magnitude over time, while additive models assume a constant magnitude. Therefore, over long periods of time, multiplicative models may be more accurate in capturing the changing nature of the data.

Over Long Periods of Time, Multiplicative Time-Series Models May Be