After estimating a trend model for annual time-series data, you obtain the following residual plot against time.
The problem with your model is that
A) the cyclical component has not been accounted for.
B) the seasonal component has not been accounted for.
C) the trend component has not been accounted for.
D) the irregular component has not been accounted for.

Question

After estimating a trend model for annual time-series data, you obtain the following residual plot against time. 
The problem with your model is that
A) the cyclical component has not been accounted for. 
B) the seasonal component has not been accounted for. 
C) the trend component has not been accounted for. 
D) the irregular component has not been accounted for.

Quizplus · Accepted Answer

The residual plot shows patterns in the form of a curved line, indicating that the trend component has not been fully accounted for. The residual plot does not show any significant cyclical or seasonal pattern. Although there may be some irregularity in the data, it does not explain the systematic pattern observed in the residual plot. Therefore, the problem with the model is that the trend component has not been accounted for.

After Estimating a Trend Model for Annual Time-Series Data, You