The trend line $\tilde { y } _ { t }$ = 0.75 + 0.005t was calculated from quarterly data for 2000-2004,where t = 1 for the first quarter of 2000.The trend value for the second quarter of the year 2005 is 0.86.

Question

Quizplus · Accepted Answer

To find the trend value for the second quarter of the year 2005, we need to substitute t = 21 (since the second quarter of 2005 is the 21st quarter).

Therefore, 
$\tilde { y }_{21} = 0.75 + 0.005(21) = 0.855$

The given trend value is 0.86, which is very close to our calculated value of 0.855. Therefore, the statement is true.

The Trend Line y~t\tilde { y } _ { t }y~​t​

The Trend Line $\tilde { y } _ { t }$