When a time series appears to be increasing at an increasing rate,such that percentage difference from observation to observation is constant,the appropriate model to fit is the
A) exponential trend.
B) quadratic trend.
C) linear trend.
D) None of the above.

Question

Quizplus · Accepted Answer

This type of relationship, where the percentage difference from observation to observation is constant, suggests an exponential growth pattern. Therefore, the appropriate model to fit in this case would be an exponential trend. A quadratic trend would show a change in the rate of increase, while a linear trend would result in a constant absolute difference between observations.

When a Time Series Appears to Be Increasing at an Increasing