A fundamental distinction between trend projection and linear regression is that:
A) trend projection uses least squares while linear regression does not.
B) only linear regression can have a negative slope.
C) in trend projection the independent variable is time; in linear regression the independent variable need not be time, but can be any variable with explanatory power.
D) trend projection can be a function of several variables, while linear regression can only be a function of one variable.
E) trend projection uses two smoothing constants, not just one.

Question

Quizplus · Accepted Answer

Trend projection is specifically used to forecast future values based on the historical trend over time, with time serving as the independent variable. Linear regression, on the other hand, can be used to establish a relationship between any two variables, with one variable serving as the independent variable and the other as the dependent variable. Therefore, trend projection specifically relies on time as the independent variable, while linear regression can use any relevant variable.

A Fundamental Distinction Between Trend Projection and Linear Regression Is