Time Series Analysis: Simple and Log-linear Trend Models

Simple Time Series Models

This is basic trend modeling.

A simple trend model can be expressed as follows:

$$\tilde{y}_t = b_0 + b_1 t + \varepsilon_t$$

• $b_0$ = the y-intercept; where t = 0.
• $b_1$ = the slope coefficient of the time trend.
• t = the time period.
• $\tilde{y}_t$ = the estimated value for time t based on the model.