A Fundamental Distinction Between Trend Projection and Linear Regression Is

question 101

Multiple Choice

A fundamental distinction between trend projection and linear regression is that:

• A) trend projection uses least squares while linear regression does not.
• B) only linear regression can have a negative slope.
• C) in trend projection the independent variable is time; in linear regression the independent variable need not be time, but can be any variable with explanatory power.
• D) trend projection can be a function of several variables, while linear regression can only be a function of one variable.
• E) trend projection uses two smoothing constants, not just one.

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