Assume that the current date is February 1, 2013. The linear regression model was applied to a monthly time series data based on the last 24 months' sales. (from January 2011 through December 2012). The following partial computer output summarizes the results.
$$\begin{array} { l c c }
\text { Coeffficient } & \text { Estimate } & t \
\text { Intercept } & 4.3 & 2.07 \
\text { Slope } & 1.6 & 2.98
\end{array}$$
-Determine the predicted sales for February 2013.
A)45.9
B)42.7
C)44.3
D)109.1
E)113.4

Question

Assume that the current date is February 1, 2013. The linear regression model was applied to a monthly time series data based on the last 24 months' sales. (from January 2011 through December 2012). The following partial computer output summarizes the results.
$$\begin{array} { l c c } 
\text { Coeffficient } & \text { Estimate } & t \
\text { Intercept } & 4.3 & 2.07 \
\text { Slope } & 1.6 & 2.98
\end{array}$$
-Determine the predicted sales for February 2013.
A)45.9
B)42.7
C)44.3
D)109.1
E)113.4

Quizplus · Accepted Answer

The predicted sales for February 2013 can be calculated using the linear regression model:Predicted sales = Intercept + Slope * Timewhere Time is the number of months since January 2011.For February 2013, Time = 25.Therefore, Predicted sales = 4.3 + 1.6 * 25 = 45.9

Assume That the Current Date Is February 1, 2013 -Determine the Predicted Sales for February 2013