In comparison with the linear trend model, which of the following is not true of the cubic trend model? A) It always has better MSE. B) Two additional variables, t²and t³, 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 statement "Only one change in the direction of a series can be modeled" is true for the cubic trend model and not for the linear trend model. Therefore, option C is not true for the cubic trend model. The other statements in the options may or may not be true for the cubic trend model, depending on the data being analyzed.

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