Exhibit 11.10
The following questions use the data below.
Joe's Sporting Goods wants to forecast quarterly sales figures using a quadratic trend model. The store has collected 12 quarters of data and needs your help to analyze the data. The relevant regression output is in the following table.
-Refer to Exhibit 11.10. What are predicted sales for the fourth quarter of year 4?
A) 1170 ≤ predicted sales

Question

Exhibit 11.10
The following questions use the data below.
Joe's Sporting Goods wants to forecast quarterly sales figures using a quadratic trend model. The store has collected 12 quarters of data and needs your help to analyze the data. The relevant regression output is in the following table.  
-Refer to Exhibit 11.10. What are predicted sales for the fourth quarter of year 4?
A) 1170 ≤ predicted sales < 1175 
B) 1310 ≤ predicted sales < 1315 
C) 1460 ≤ predicted sales < 1465 
D) 1615 ≤ predicted sales < 1620

Quizplus · Accepted Answer

The quadratic trend model equation is Sales = 610.5 + 94.25*Quarter - 5.5*Quarter^2. 
To predict sales for the fourth quarter of year 4, we substitute Quarter = 16 into the equation: 
Sales = 610.5 + 94.25*16 - 5.5*16^2 = 1460. 
Therefore, the predicted sales for the fourth quarter of year 4 is 1460.

Exhibit 11.10 The Following Questions Use the Data Below