The regression model should be estimated _______.
A)based only on historical data to ensure it can be used to make predictions for the current period
B)based only on predicted future data to ensure it can be used to make predictions for the current period
C)based only on historical data to ensure it can be used to make predictions for prior periods
D)based only on forecasted data to ensure it can be used to make predictions for prior periods

Question

Quizplus · Accepted Answer

The regression model should be estimated based only on historical data to ensure that it can be used to make predictions for the current period. Using predicted future data or forecasted data would not be appropriate as they are not actual data and may not accurately represent future trends. Similarly, using historical data to make predictions for prior periods is not the intended purpose of a regression model.

The Regression Model Should Be Estimated _______