I in the Linear Trend Equation, T Is Any Value

question 102

Multiple Choice

i. In the linear trend equation, t is any value that corresponds with a time period, i.e., month or
Quarter.
ii. A straight-line trend equation is used to represent the time series when it is believed that the data
Is increasing (or decreasing) by equal amounts, on the average, from one period to another.
iii. If the past data approximates a straight line, the equation used is
= a + bt, where a is the y-
Intercept and b is the slope of the line.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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