If the percentage differences between consecutive values are constant,which of the following models may be the most appropriate?
A)linear trend model
B)exponential trend model
C)second order autoregressive model
D)quadratic trend model

Question

Quizplus · Accepted Answer

The constant percentage differences between consecutive values suggest an exponential growth or decay pattern, which is captured by the exponential trend model. The other models (linear trend, second order autoregressive, quadratic trend) do not account for the constant percentage differences.

If the Percentage Differences Between Consecutive Values Are Constant,which of the Following