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A Plot the Following Time Series B Use the Regression Technique to Calculate the Linear Trend

question 111

Essay

a. Plot the following time series. Would the linear or quadratic model fit better?  Time period yt Time period yt155502868531471354258190\begin{array} { c c c c } \text { Time period } & y _ { t } & \text { Time period } & y _ { t } \\\hline 1 & 5 & 5 & 50 \\2 & 8 & 6 & 85 \\3 & 14 & 7 & 135 \\4 & 25 & 8 & 190\end{array} b. Use the regression technique to calculate the linear trend line and the quadratic trend line.
c. Which line fits better?


Definitions:

Total Utility

The entire enjoyment experienced from the use of a particular quantity of goods or services.

Marginal Utility

The supplementary enjoyment or advantage gained by a customer from the consumption of one more unit of a good or service.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service relative to its market price, indicating the economic benefit to consumers.

High Price

Refers to goods or services being sold at a rate above the average market value, often due to high demand, low supply, or premium quality.

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