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) linear trend.
B) quadratic trend.
C) exponential trend.
D) None of the above.

Question

Quizplus · Accepted Answer

An exponential trend is appropriate when the data increases at an increasing rate with a constant percentage change, indicating exponential growth.

When a Time Series Appears to Be Increasing at an Increasing