Consider the following trend models estimated from 30 observations. Linear Model: = 24 + 0.12t Quadratic
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Consider the following trend models estimated from 30 observations.
Linear Model: ŷ = 24 + 0.12t
Quadratic Model 2: ŷ = 30 + 0.20t − 0.01t2
a. Use each model to make a forecast for y at t = 31 and t = 32.
b. Which is the preferred model for forecasting if, relative to the linear model, the quadratic model has higher R2 but lower adjusted R2 ?
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Related Book For
Business Statistics Communicating With Numbers
ISBN: 9781260716306
4th Edition
Authors: Sanjiv Jaggia, Alison Kelly
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