If We Fit a Linear Trend to Data That Are

question 26

Multiple Choice

If we fit a linear trend to data that are growing exponentially, which is least likely?

• A)The fitted trend will be too low at the beginning and end.
• B)The fitted trend will be too high in the middle.
• C)The forecasts (if extrapolated) will be too low.
• D)The fit will be poor to the most recent data.

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Definitions:

Percentage

A proportion or share in relation to a whole, represented as a fraction of 100.

Strengthens

Becomes stronger or more forcefully effective.

C$

Currency symbol for the Canadian dollar, the official currency of Canada.

Euro

The official currency of the eurozone, which is used by 19 of the 27 European Union countries.