i. In the linear trend equation, t is any value that corresponds with a time period, i.e., month or quarter.
ii. The least squares method of computing the equation for a straight line going through the data of interest gives the "best fitting" line.
Iii) If the sales, production or other data over a period of time tend to approximate a straight-line
Trend, the equation developed by the least squares method cannot be used to forecast sales for a future period.
A) (i) , (ii) and (iii) are all correct statements
B) (i) and (ii) are correct statements, but not (iii) .
C) (i) and (iii) are correct statements but not (ii) .
D) (ii) and (iii) are correct statements but not (i) .
E) All statements are false
Correct Answer:
Verified
Q22: The following linear trend equation was developed
Q24: i. In a time series analysis, the
Q25: Q25: What is a disadvantage of estimating a Q27: For a time series beginning with 1988 Q28: i. In a time series analysis, the Q30: Given the trend equation ŷ = 25 Q31: i. The moving average method averages out Q33: Given a linear time series trend, Q37: The following linear trend equation was developed![]()
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