Univariate models and multivariate models will provide different results when modeling one particular time series. TRUE...

Univariate models and multivariate models will provide different results when modeling one particular time series.

TRUE

FALSE

*Please explain why if possible. Thank you.

Solutions

Expert Solution

Univariate Model:-

A univariate time series, as the name suggests, is a series with a single time-dependent variable.

For example, have a look at the sample dataset below that consists of the temperature values (each hour), for the past 2 years.

Multivariate Model:-

A Multivariate time series has more than one time-dependent variable. Each variable depends not only on its past values but also has some dependency on other variables. This dependency is used for forecasting future values. Sounds complicated? Let me explain.

Consider the above example. Now suppose our dataset includes perspiration percent, dew point, wind speed, cloud cover percentage, etc. along with the temperature value for the past two years.

The above in question given statement is true because in the multivariate model we include some ancillary parameter also they provide some information about the study parameter. So it will give a better forecast than univariate model.

orchestra answered 2 years ago

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