i. In the linear trend equation, the letter "b" is the average change in t for each change of one unit (either increase or decrease) in y. ii. In the linear trend equation, t is any value that corresponds with a time period, i.e., month or quarter.
iii. The least squares method of computing the equation for a straight line going through the data of interest gives the "best fitting" line.
A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question

Quizplus · Accepted Answer

In the linear trend equation, "b" represents the slope, which is the average change in the dependent variable (often denoted as "y") for each one-unit increase in the independent variable (not the other way around as stated in i). "t" indeed often represents time periods in trend analysis, making statement ii correct. The least squares method is widely used for finding the line of best fit that minimizes the sum of the squares of the vertical distances of the points from the line, making statement iii correct.

I in the Linear Trend Equation, the Letter "B" Is