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In Comparison with the Linear Trend Model, Which of the Following

Question 74

Multiple Choice

In comparison with the linear trend model, which of the following is not true of the cubic trend model?


A) It always has better MSE.
B) Two additional variables, t2 and t3, are defined in the cubic model.
C) Only one change in the direction of a series can be modeled.
D) It may have better or worse adjusted R2.

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