True or False: A least squares linear trend line is just a simple regression line with the years recorded.
Indicate whether the statement is true or false
Q. 2The method of least squares is used on time-series data for
A) obtaining the trend equation. B) eliminating irregular movements.
C) exponentially smoothing a series. D) deseasonalizing the data.
Q. 3When 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) exponential trend. C) quadratic trend. D) None of the above.
Q. 4You need to decide whether you should invest in a particular stock. You would like to invest if the price is likely to rise in the long run. You have data on the daily mean price of this stock over the past 12 months. Your best action is to
A) compute the MAD statistic. B) compute moving averages.
C) perform exponential smoothing. D) estimate a least square trend model.
Q. 5A model that can be used to make predictions about long-term future values of a time series is
A) linear trend. B) exponential trend. C) quadratic trend. D) All of the above.
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