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

Question

Quizplus · Accepted Answer

When a time series appears to be increasing at an increasing rate, such as in exponential growth, the appropriate model to fit is an exponential trend model. This is because the percentage difference from value to value remains constant, which is a characteristic of exponential growth. A linear or quadratic trend would not adequately capture the increasing rate of growth in the time series.

When a Time Series Appears to Be Increasing at an Increasing