Consider the time series model X₁ = u(t)+s(t) + εt. Assuming the standard notation used in this module, what do each of the terms Xt, u(t), s(t) and & represent? In a plot of X against t, what features would you look for to determine whether the terms μ(t) and s(t) are required? Explain why μ(t) and s(t) are functions of t, whilst t is a subscript in X and εt.

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter5: Inverse, Exponential, And Logarithmic Functions
Section: Chapter Questions
Problem 9T
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Consider the time series model
X₁ = u(t)+s(t) + εt.
Assuming the standard notation used in this module, what do each of the terms
Xt, u(t), s(t) and & represent?
In a plot of X against t, what features would you look for to determine whether
the terms μ(t) and s(t) are required?
Explain why μ(t) and s(t) are functions of t, whilst t is a subscript in X and εt.
Transcribed Image Text:Consider the time series model X₁ = u(t)+s(t) + εt. Assuming the standard notation used in this module, what do each of the terms Xt, u(t), s(t) and & represent? In a plot of X against t, what features would you look for to determine whether the terms μ(t) and s(t) are required? Explain why μ(t) and s(t) are functions of t, whilst t is a subscript in X and εt.
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