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CFA Level 2
Quantitative Methods

Identifying the Correct Trend Model for Sales Data

Easy Time-series Analysis Trend Models

A company has been collecting data on its quarterly sales for the past five years. The management team suspects that the sales figures may have a linear trend over time. To analyze the data, they are considering using a trend model to make future sales predictions. Which of the following trend models would be most appropriate for modeling a linear trend in the quarterly sales data?

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% Correct87%