SCENARIO 16-13
Given below is the monthly time series data for U.S.retail sales of building materials over a specific year.
The results of the linear trend,quadratic trend,exponential trend,first-order autoregressive,second-order autoregressive and third-order autoregressive model are presented below in which the coded month for the 1 st month is 0:
Linear trend model:

Quadratic trend model:
Third-order autoregressive::

Below is the residual plot of the various models:

-Referring to Scenario 16-13,the best model based on the residual plots is the exponential-trend regression model.

Question

SCENARIO 16-13
Given below is the monthly time series data for U.S.retail sales of building materials over a specific year.
  The results of the linear trend,quadratic trend,exponential trend,first-order autoregressive,second-order autoregressive and third-order autoregressive model are presented below in which the coded month for the 1 st month is 0:
Linear trend model:
  
Quadratic trend model:
    Third-order autoregressive::
  
Below is the residual plot of the various models:
  
-Referring to Scenario 16-13,the best model based on the residual plots is the exponential-trend regression model.

Quizplus · Accepted Answer

Residual plots are used to assess the fit of a model. Without specific information about the residual plots in Scenario 16-13, we cannot definitively say that the exponential-trend regression model is the best.

SCENARIO 16-13 Given Below Is the Monthly Time Series Data for U.S.retail