You need to decide whether you should invest in a particular stock. You would like to invest if the price is likely to rise in the long run. You have data on the daily mean price of this
Stock over the past 12 months. Your best action is to
A) compute moving averages
B) perform exponential smoothing
C) estimate a least square trend model
D) compute the MAD statistic

Question

Quizplus · Accepted Answer

Estimating a least square trend model helps identify the long-term trend in the stock price, which is useful for predicting future price movements and making investment decisions.

You Need to Decide Whether You Should Invest in a Particular