Question

In contrast to linear trend, exponential trend is appropriate when the time series changes by a: a. constant amount each time period b. constant percentage each time period c. negative amount each time period d. positive amount each time period

Answer 1

Answer:

b. constant percentage each time period

Explanation:

Exponential growth reflects the increase of a quantity in a specific way within a time period. Exponential trends rise or fall at increasingly higher rates than linear trends and constitute curved lines as opposed to linear trendlines that show data point patterns that resemble a straight line. Exponential trend occur when the "instantaneous" rate of change of a quantity as it relates to time is proportional to the quantity itself.