Prices of Crude Oil Have Been Steadily Rising Over the Last

question 100

Multiple Choice

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. Which of the following is a cubic trend equation used to forecast for the price of regular unleaded gasoline?

• A) = 1.5175 + 0.2188t³.
• B) = exp(1.5175 + 0.2188t - 0.0136t² + 0.0003t³)
• C) = 1.5175 - 0.0136t² + 0.0003t³

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