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Prices of Crude Oil Have Been Steadily Rising Over the Last

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Prices of crude oil have been steadily rising over the last two years (The Wall Street Journal,December 14,2010) .The monthly data on price per gallon of unleaded regular gasoline in the United States from January 2009 to December 2010 were available.Three trend models were created,and the following relevant information became available. Prices of crude oil have been steadily rising over the last two years (The Wall Street Journal,December 14,2010) .The monthly data on price per gallon of unleaded regular gasoline in the United States from January 2009 to December 2010 were available.Three trend models were created,and the following relevant information became available.   Based on adjusted R<sup>2</sup>,which of the following models is the most appropriate for making a forecast for the price of regular unleaded gasoline? A)  Linear B)  Quadratic C)  Cubic D)  Cannot be estimated Based on adjusted R2,which of the following models is the most appropriate for making a forecast for the price of regular unleaded gasoline?


Definitions:

Demand

The desire to own something and the ability to pay for it at a specific price.

Supply

The total amount of a product or service that is available for purchase at any given price level in a market.

Samsung

A multinational conglomerate corporation based in South Korea, known for its electronics, appliances, and technology products.

Quantity

The amount or number of a material or immaterial good or service.

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