Stats week 3

 WRITE 1 PAGE FOR Initial Post  DISCUSSION ANSWER. Due in 12 hours

AND MAKE EACH Student WORK REPLY, EACH ONE NEED 0.5 PAGE, TOTAL 1 PAGE for reply.  I will attach the students replies post later. 

Write a minimum of 250 words for each of the discussion questions below:

In many applications, a time series decomposition (i.e., time series filtering) is used to separate or decompose a time series Xt into its trend, seasonal, and irregular components. In some of these applications, the decomposition relationship is assumed to be additive (Xt = Trendt + Seasonalt + Irregulart); while in other applications the decomposition relationship is assumed to be multiplicative (Xt = Trendt x Seasonalt x Irregulart).

1. Explain the merits of such decomposition methods, and mention a particular example of a time series where you believe that implementing a decomposition technique is justified. Explain your reason(s) for selecting such an example.
2. Explain in what situations you would prefer to use an additive decomposition method, and in what situations you would prefer to use a multiplicative method in your time series decomposition.

In your two replies to classmates, provide rationales as to whether you agree or disagree with their choices of examples of additive and multiplicative time series decompositions.