When linear trend forecasts are developed, demand would typically be:
A) The independent variable
B) The dependent variable
C) The lead variable
D) The passive variable

Question

Quizplus · Accepted Answer

In linear trend forecasting, the past demand data is used to predict future demand. Therefore, the demand is the dependent variable, and the time period is the independent variable. The trend line is drawn between these two variables, and the slope of the line is used to estimate the rate of increase in demand over time. Therefore, option B is the correct answer.

When Linear Trend Forecasts Are Developed, Demand Would Typically Be