(A) Fit the Appropriate Regression Model to the Data

question 95

Essay

(A) Fit the appropriate regression model to the data. Report the resulting equation and state explicitly what it says about the percentage growth per month.
(B) What is the MAPE for the forecast model in (A)? What does it measure? Considering its magnitudes, does the model seem to be doing a good job?

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Definitions:

IRR

An economic indicator, the Internal Rate of Return is utilized to assess the possible profitability of investment opportunities.

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment or project, calculated by summing the present values of incoming and outgoing cash flows.

Preferred Stock

A security that pays a constant dividend forever. A hybrid between debt and common equity.

Hybrid Security

A financial instrument that combines characteristics of both equity and debt, often providing fixed income or dividends as well as the potential for capital appreciation.