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Basic Question 3 of 4

Consider the following model of value in a savings fund that depends on the initial investment, the rate of return, and the length of time in which the funds are invested: Yt = Y0 (1 + r)t, where Yt represents the value of the fund at time t, Y0 is the initial investment in the savings fund, and r is the growth rate. Which model would have the best fit?

It is a:

A. lin-log model
B. log-lin model
C. log-log model

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I used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

describe different functional forms of simple linear regressions

CFA® 2024 Level I Curriculum, Volume 1, Module 10.