A company has developed a linear trend regression model based on 16 quarters of data. The independent variable is the measure of time (t = 1 thru 16 where quarter 1 is winter quarter, 2 is spring, etc.). The company has also developed seasonal indexes for each quarter as follows: The linear trend forecast equation is: = 120 + 56t. Given this information, what is the seasonally unadjusted forecast for period 19?
A) 1,064
B) 1,184
C) 828.80
D) 986.7

Question

A company has developed a linear trend regression model based on 16 quarters of data. The independent variable is the measure of time (t = 1 thru 16 where quarter 1 is winter quarter, 2 is spring, etc.). The company has also developed seasonal indexes for each quarter as follows:  The linear trend forecast equation is: = 120 + 56t. Given this information, what is the seasonally unadjusted forecast for period 19?
A) 1,064 
B) 1,184 
C) 828.80 
D) 986.7

Quizplus · Accepted Answer

The Answer of A company has developed a linear trend regression model based on 16 quarters of data. The independent variable is the measure of time (t = 1 thru 16 where quarter 1 is winter quarter, 2 is spring, etc.). The company has also developed seasonal indexes for each quarter as follows:  The linear trend forecast equation is: = 120 + 56t. Given this information, what is the seasonally unadjusted forecast for period 19?
A) 1,064 
B) 1,184 
C) 828.80 
D) 986.7

A Company Has Developed a Linear Trend Regression Model Based