Which Statement Is Most Nearly Correct Regarding Time-Series Trend Models

question 91

Multiple Choice

Which statement is most nearly correct regarding time-series trend models?

• A) The quadratic model is best for a series that is growing by a constant percent.
• B) A linear model may yield a higher R² than a quadratic model.
• C) The exponential model is rarely used for financial data.
• D) The exponential model would be linear if we take the natural log of y_t.

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