Which trend would you choose to forecast the number of tractors sold in 2010?
A) Linear model.
B) Polynomial model.
C) The forecasts are equivalent.

Question

Which trend would you choose to forecast the number of tractors sold in 2010?  
A) Linear model. 
B) Polynomial model. 
C) The forecasts are equivalent.

Quizplus · Accepted Answer

The linear model would be the best choice for forecasting the number of tractors sold in 2010 because it assumes a constant rate of change in sales over time, which is a reasonable assumption for a market that is not experiencing significant fluctuations or disruptions. The polynomial model would be less appropriate because it allows for non-linear trends, which would be less likely to accurately reflect the underlying patterns in tractor sales.

Which Trend Would You Choose to Forecast the Number of Tractors