Which of the following statements is correct?

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 – 0 003×2

Which of the following statements is correct?
A . The model is based on historical data, so it is of little use in making forecasts
B . 1 percent increase in the number of fixed broadband internet subscribers will lead to 0 3 percent increase in household final consumption expenditure.
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 makes accurate forecasts on household final consumption expenditure in Country and therefore it should be widely applied to most countries and regions.

View Answer

Answer: D