If the trend equation is quadratic in time t=1….T, the forecast value for the next time period, T+1, depends on time T.

Question

Quizplus · Accepted Answer

In a quadratic trend equation, the forecast value for any time period, including T+1, is calculated using the equation which includes the time variable. Therefore, the forecast for T+1 directly depends on the value of T as it is plugged into the quadratic equation to calculate the forecast.

If the Trend Equation Is Quadratic in Time T=1…