Which of the Following Is True of the Linear Trend

question 109

Multiple Choice

Which of the following is true of the linear trend model?

• A) It assigns exponentially decreasing weights to older observations.
• B) It is a causal forecasting model.
• C) It can extract a long-term upward or downward steady movement in a series.
• D) It is used when a series involves only random fluctuations.

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Definitions:

Return-on-investment (ROI)

A financial metric utilized to evaluate the efficiency of an investment or compare the efficiency of several different investments.

Business-to-business Markets

Markets focused on selling products or services from one business to another rather than to individual consumers.

Public Utilities

Organizations that provide essential services to the public such as water, electricity, natural gas, and telecommunications.

Target Return-on-sales Pricing

A pricing strategy where the price is set with the aim of achieving a specific return on sales percentage.