Which of the following models might be appropriate to describe a new product that has experienced a rapid early growth rate followed by the inevitable levelling-off?
A)The autoregressive model.
B)The linear model for long-term trend.
C)The quadratic model for long-term trend.
D)All of these choices are correct.

Question

Quizplus · Accepted Answer

The quadratic model for long-term trend is appropriate to describe a new product that experiences rapid early growth followed by levelling-off. This model considers both a linear and a quadratic trend, capturing the initial fast growth with the quadratic term and the eventual slowing down with the linear term. The autoregressive model is more appropriate for time series data with autocorrelation, and the linear model for long-term trend assumes a constant growth rate which does not account for the initial rapid growth and levelling-off.

Which of the Following Models Might Be Appropriate to Describe