The following is the list of MAD statistics for each of the models you have estimated from time-series data: $$\begin{array} { | l | c | }
\hline \text { Model } & MA D \
\hline \text { Linear Trend } & 1.38 \
\hline \text { Quadratic Trend } & 1.22 \
\hline \text { ExponentialTrend } & 1.39 \
\hline \text { AR(2) } & 0.71 \
\hline
\end{array}$$ Based on the MAD criterion,the most appropriate model is
A) linear trend.
B) AR(2).
C) quadratic trend.
D) exponential trend.

Question

The following is the list of MAD statistics for each of the models you have estimated from time-series data: $$\begin{array} { | l | c | } 
\hline \text { Model } & MA D \
\hline \text { Linear Trend } & 1.38 \
\hline \text { Quadratic Trend } & 1.22 \
\hline \text { ExponentialTrend } & 1.39 \
\hline \text { AR(2) } & 0.71 \
\hline
\end{array}$$ Based on the MAD criterion,the most appropriate model is
A) linear trend.
B) AR(2).
C) quadratic trend.
D) exponential trend.

Quizplus · Accepted Answer

The most appropriate model based on the MAD (Mean Absolute Deviation) criterion is the one with the lowest MAD value, which is the AR(2) model with a MAD of 0.71.

The Following Is the List of MAD Statistics for Each