Which trend would you choose to forecast the number of water damage claims in 2010?
A) Exponential model.
B) Polynomial model.
C) They are equivalent.

Question

Which trend would you choose to forecast the number of water damage claims in 2010?  
A) Exponential model. 
B) Polynomial model. 
C) They are equivalent.

Quizplus · Accepted Answer

An exponential model would be the best choice for forecasting the number of water damage claims as it takes into account the compounding effect of events such as weather conditions, natural disasters, and aging infrastructure, which can lead to an increase in the frequency and severity of water damage claims over time. A polynomial model may not accurately capture this compounding effect and may not provide a reliable forecast.

Which Trend Would You Choose to Forecast the Number of Water