company hires you to develop a linear regression forecasting model.Based on the company's historical sales information,you determine the intercept value of the model to be 1,200.You also find the slope value is minus 50.If after developing the model you are given a value of X = 10,which of the following is the resulting forecast
Value using this model?
A)- 1,800
B)700
C)1,230
D)1,150
E)12,000

Question

Quizplus · Accepted Answer

The forecast value is calculated using the linear regression equation: Forecast = Intercept + (Slope * X). Here, it is 1,200 + (-50 * 10) = 1,200 - 500 = 700.

Company Hires You to Develop a Linear Regression Forecasting Model