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NEW QUESTION: 1
A research business compiles the following data for Country D over 8 years:
* Household expenditure, y (in millions of constant 20X6 dollars);
* The number of fixed broadband internet subscribers, x (in thousands).
Based on this information the following regression model is developed:
y = 332668 * 45.8x - 0 003x2
Which of the following statements is correct?
A. 1 percent increase in the number of fixed broadband internet subscribers will lead to 0 3 percent increase in household final consumption expenditure.
B. The model makes accurate forecasts on household final consumption expenditure in Country and therefore it should be widely applied to most countries and regions.
C. A non-linear relationship is suggested by the model between household final consumption expenditure and the number of fixed broadband internet subscribers.
D. The model is based on historical data, so it is of little use in making forecasts
Answer: B