Multiple Choice
A computer analysis reveals that the best-fitting trend model is yt = 4.12e0.987t. The trend was fitted using year-end common stock prices for Melodic Kortholt Outlet for the last six years. The R2 is 0.8571. Which conclusion is not supportable?
A) The absolute annual growth (in dollars per share) is increasing.
B) Few investments could match the astounding growth rate.
C) At the end of year 3 the stock price would be nearly $80.
D) The exponential model is inappropriate for financial data.
Correct Answer:
Verified
Correct Answer:
Verified
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