Question

The following is the list of MAD statistics for each of the models you have estimated...

The following is the list of MAD statistics for each of the models you have estimated from time-series data:

Model MAD
Linear Trend 1.38
Quadratic Trend 1.22
Exponential Trend 1.39
AR(2) 2.71

Based on the MAD criterion, the most appropriate model is

Question 12 options:

A. linear trend.

B. quadratic trend.

C. exponential trend.

D. AR(2).

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Answer #1

since MAD is least for the Quadratic trend , therefore

Based on the MAD criterion, the most appropriate model is Quadratic trend

option B is correct

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