A time-series graph shows that monthly income data have decreased gradually over the past 5 years. Given this, if a linear trend model is used to forecast future monthly income, the sign on the regression slope coefficient will be negative.

Question

Quizplus · Accepted Answer

A linear trend model forecasting future monthly income based on a time-series graph showing a gradual decrease over the past 5 years would indeed have a negative slope coefficient, as the negative slope represents the decreasing trend in the data.

A Time-Series Graph Shows That Monthly Income Data Have Decreased