Renton Industries makes replacement parts for the automobile industry.As part of the company's capacity planning,it needs a long-range total demand forecast.The following information was generated based on 10 years of historical data on total number of parts sold each year. Based on this information,the percent of variation in the number of parts sold that is explained by the linear trend model is approximately 90.9.

Question

Renton Industries makes replacement parts for the automobile industry.As part of the company's capacity planning,it needs a long-range total demand forecast.The following information was generated based on 10 years of historical data on total number of parts sold each year.  Based on this information,the percent of variation in the number of parts sold that is explained by the linear trend model is approximately 90.9.

Quizplus · Accepted Answer

The statement says that "the percent of variation in the number of parts sold that is explained by the linear trend model is approximately 90.9", which means that the linear trend model is a good fit for the historical data and can explain a significant proportion of the variation in the number of parts sold. Therefore, the answer is True, option A.

Renton Industries Makes Replacement Parts for the Automobile Industry