Difference between additive and multiplicative models
Additive and multiplicative models can only be easily distinguished when
there is noticeable trend in the time series.
- Additive model
- For this model, the seasonal, cyclical and residual variation around the
trend line are of approximately the same size whether the trend value is low or
high.

- Multiplicative model
- In a multiplicative model, the seasonal, cyclical and residual variation
around the trend line are greater when the trend is at high values than when
the trend is low.
