The following is the list of MAD statistics for each of the models you have estimated from time-series data: Based on the MAD criterion, the most appropriate model is
A)linear trend.
B)quadratic trend.
C)exponential trend.
D)second-order autoregressive.

Question

The following is the list of MAD statistics for each of the models you have estimated from time-series data:  Based on the MAD criterion, the most appropriate model is
A)linear trend. 
B)quadratic trend. 
C)exponential trend. 
D)second-order autoregressive.

Quizplus · Accepted Answer

The MAD criterion is used to select a model that has the lowest Mean Absolute Deviation between the predicted values and the actual values. The second-order autoregressive model has the lowest MAD value among all the models, which means it is the most appropriate model for the given time-series data. Therefore, the correct answer is D.

The Following Is the List of MAD Statistics for Each