The Port of Oakland airport reports the number of passengers
The Port of Oakland airport reports the number of passengers passing through each month. At first glance, this is just simple growth, but by recognizing the series as a time series, we may learn more. The following plot was created in Excel 2013.
The increasing spread of the data suggests that a multiplicative model may fit better.
Here’s an exponential trend model with seasonal (monthly) dummy variables.
a) Interpret the slope.
b) Interpret the intercept.
c) Which months have the lowest traffic at Oakland airport?
Here’s a plot of the residuals from the model fit to the Oakland airport passengers, created in Excel:
d) What components would you now say are in this series?
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