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

To calculate the seasonally unadjusted forecast for period 19, we need to use the linear trend forecast equation and plug in t=19.

11ea7a43_ea19_5f15_89bd_e313b861f99e_TB3933_11 = 120 + 56(19)
= 120 + 1064
= 1184

Therefore, the seasonally unadjusted forecast for period 19 is 1184. The answer is B.

A Company Has Developed a Linear Trend Regression Model Based