Question

The long-term trend only Least-Squares Regression Model is the same as a simple linear regression with time (t) as the independent variable and our time series (Yt) as the dependent variable.
a. True
b. False

Answer 1

Answer: a. True

Explanation:

The simple linear regression model is;

y = mx + c

Where,

y = dependent variable

m is the slope

x is the independent variable

c is the y- intercept

The long-term trend only Least-Squares Regression Model also follows the same format except y becomes Yt and x becomes t.

The long-term trend only Least-Squares Regression Model is therefore the same as a simple linear regression only with different variable terms.