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Rhonda Wilson, CFA, is analyzing sales data for the TUV Corp, a current equity holding in her portfolio. She observes that sales for TUV Corp. have grown at a steadily increasing rate over the past ten years due to the successful introduction of some new products. Wilson anticipates that TUV will continue this pattern of success. Which of the following models is most appropriate in her analysis of sales for TUV Corp.? A. A linear tend model, because the data series is equally distributed above and below the line and the mean is constant. B. A log-linear trend model, because the data series exhibits a predictable, exponential growth trend. C. A log-linear trend model, because the data series can be graphed using a straight, upward-sloping line. |