Superimposed linear and quadratic trends

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Reference no: EM131798587

Consider the following table, consisting of 20 observations of the variable y and time t. The data are also on the text website, labeled Exercise 18.12

204_observations of the variable.png

a. Plot the series along with the superimposed linear and quadratic trends. Which trend model do you think describes the data well?

b. Estimate a linear trend model and a quadratic trend model. Validate your guess from the graphs by comparing their adjusted R².

Reference no: EM131798587

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