A linear trend means that the time series variable changes by a:
A) constant amount each time period
B) constant percentage each time period
C) positive amount each time period
D) negative amount each time period

Question

Quizplus · Accepted Answer

A linear trend means that the variable changes by a constant amount each time period. This can be represented by a straight line on a graph. Choice B is incorrect because a constant percentage change each time period represents an exponential trend. Choices C and D are incorrect because they imply a specific direction of change (positive or negative), whereas a linear trend can be either positive or negative depending on the specific data being analyzed.

A Linear Trend Means That the Time Series Variable Changes