The superintendent of a school district wanted to predict the percentage of students passing a sixth-grade proficiency test. She obtained the data on percentage of students passing the proficiency test ( Passing), daily mean of the percentage of students attending class ( Attendance), mean teacher salary in dollars (Salaries), and instructional spending per pupil in dollars (Spending) of 47 schools in the state. She believed that holding everything else constant, instructional spending per pupil had a positive but decreasing impact on percentage. Which of the following would be the most appropriate analysis to perform?
A) Autoregressive modeling
B) Least-squares forecasting with monthly or quarterly data
C) Exponential smoothing
D) Linear regression with log transformation
Question 2
A certain type of rare gem serves as a status symbol for many of its owners. In theory, for low prices, the demand increases and it decreases as the price of the gem increases. However, experts hypothesize that when the gem is valued at very high prices, the demand increases with price due to the status owners believe they gain in obtaining the gem. Data on price and quantity sold were collected for a sample of 35 rare gems of this type. Which of the following would be the most appropriate analysis to perform?
A) Least-squares forecasting with monthly or quarterly data
B) Exponential smoothing
C) Quadratic regression model
D) Autoregressive modeling for trend fitting and forecasting
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