After Estimating a Trend Model for Annual Time-Series Data, You

question 112

Multiple Choice

After estimating a trend model for annual time-series data, you obtain the following residual plot against time, the problem with your model is that

• A) the trend component has not been accounted for.
• B) the irregular component has not been accounted for.
• C) the cyclical component has not been accounted for.
• D) the seasonal component has not been accounted for.

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Definitions:

Hierarchical Model

A way of organizing objects, ideas, or information in a structure where items are ranked according to levels of importance or authority.

Correlation Coefficients

Statistical measures that indicate the extent to which two or more variables fluctuate together.

Theoretical Entity

Concepts or things that are assumed to exist to rationalize, explain, or predict phenomena, although they may not be directly observable.

Frontal Cortex

a region of the brain located in the front part of the cerebral cortex, involved in decision making, problem solving, conscious thought, and social behavior.