A multiplicative time-series model Y = T × C × S × I becomes an additive model if we take the logarithm of each side of the equation.

Question

Quizplus · Accepted Answer

Taking the logarithm of both sides of a multiplicative time-series model $Y = T \times C \times S \times I$ converts it into an additive model because the logarithm of a product is equal to the sum of the logarithms ($\log(AB) = \log(A) + \log(B)$). Thus, $\log(Y) = \log(T) + \log(C) + \log(S) + \log(I)$.

A Multiplicative Time-Series Model Y = T × C ×