The following is the list of MAD statistics for each of the models you have estimated from time-series data: $$\begin{array} { | l | l | }
\hline \text { Model } & \text { MAD } \
\hline \text { Linear Trend } & 1.38 \
\hline \text { Quadratic Trend } & 1.22 \
\hline \text { Exponential Trend } & 1.39 \
\hline \text { Second-order Autoregressive } & 0.71 \
\hline
\end{array}$$ Based on the MAD criterion, the most appropriate model is
A) linear trend.
B) quadratic trend.
C) exponential trend.
D) second-order autoregressive.

Question

The following is the list of MAD statistics for each of the models you have estimated from time-series data: $$\begin{array} { | l | l | } 
\hline \text { Model } & \text { MAD } \
\hline \text { Linear Trend } & 1.38 \
\hline \text { Quadratic Trend } & 1.22 \
\hline \text { Exponential Trend } & 1.39 \
\hline \text { Second-order Autoregressive } & 0.71 \
\hline
\end{array}$$ Based on the MAD criterion, the most appropriate model is
A) linear trend.
B) quadratic trend.
C) exponential trend.
D) second-order autoregressive.

Quizplus · Accepted Answer

The model with the lowest Mean Absolute Deviation (MAD) is considered the most appropriate. The second-order autoregressive model has the lowest MAD of 0.71.

The Following Is the List of MAD Statistics for Each