In comparison with the linear trend model,which of the following is not true of the cubic trend model? A)It has always better MSE. B)Two additional variables, and ,are defined in the cubic model. C)Only one change in the direction of a series can be modeled. D)It may have better or worse adjusted R².

Question

Quizplus · Accepted Answer

The cubic trend model can model multiple changes in the direction of a series (i.e. multiple inflection points), so statement C is not true. Statements A, B, and D may be true depending on the specific data and model fit.

In Comparison with the Linear Trend Model,which of the Following