If the trend model y_t = a + bt + ct² is fitted to a time series, we would get: A)R² that could be lower than the linear model. B)R² that could be either higher or lower than the linear model. C)R² that is at least as high as the linear model. D)no R² for this type of model because it is nonlinear.

Question

Quizplus · Accepted Answer

The trend model includes a quadratic term, which allows for a more flexible fit than the linear model. Therefore, the R² for the trend model will be at least as high as the R² for the linear model, indicating that the trend model explains at least as much variation in the data as the linear model.

If the Trend Model Yt = a + Bt

If the Trend Model Y_t = a + Bt