When a time series appears to be increasing at an increasing rate, such that percentage difference from observation to observation is constant, the appropriate model to fit is the
A) exponential trend.
B) linear trend.
C) quadratic trend.
D) none of the above

Question

Quizplus · Accepted Answer

An increasing rate of growth indicates that the data is likely exhibiting exponential behavior, which can be modeled using an exponential trend. Linear and quadratic trends assume constant or decreasing rates of change, respectively, and would not accurately capture the increasing trend. Therefore, the best choice would be an exponential trend.

When a Time Series Appears to Be Increasing at an Increasing