A Certain Type of Rare Gem Serves as a Status

question 63

Multiple Choice

A certain type of rare gem serves as a status symbol for many of its owners.In theory,for low prices,the demand increases,and it decreases as the price of the gem increases.However,experts hypothesize that when the gem is valued at very high prices,the demand increases with price due to the status owners believe they gain in obtaining the gem.Data on price and quantity sold were collected for a sample of 35 rare gems of this type.Which of the following would be the most appropriate analysis to perform?

• A)Quadratic regression model.
• B)Exponential smoothing.
• C)Autoregressive modeling for trend fitting and forecasting.
• D)Least-squares forecasting with monthly or quarterly data.

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Definitions:

Independent Variable

A factor in a study or simulation that is deliberately altered to see its impact on a variable that depends on it.

Total Sum Of Squares

A measure in statistics that quantifies the total variation of a dataset.

Dependent Variable

The variable in an experiment that is expected to change in response to changes in the independent variable.

Independent Variable

A variable in an experiment or model that is manipulated or categorized to observe its effect on the dependent variable(s).