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Which Statement Is Most Nearly Correct Regarding Time-Series Trend Models

Question 92

Multiple Choice

Which statement is most nearly correct regarding time-series trend models?


A) The quadratic model is best for a series that is growing by a constant percent.
B) A linear model may yield a higher R2 than a quadratic model.
C) The exponential model is rarely used for financial data.
D) The exponential model would be linear if we take the natural log of yt.

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