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 we can conclude that the linear trend model explains a significant proportion of the variation in the number of parts sold,because the p-value is much smaller than any reasonable α that we might use.

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 we can conclude that the linear trend model explains a significant proportion of the variation in the number of parts sold,because the p-value is much smaller than any reasonable α that we might use.

Quizplus · Accepted Answer

The statement suggests that the linear trend model is statistically significant in explaining the variation in the number of parts sold, which means that the p-value must be less than the chosen significance level (α). Since the statement claims that the p-value is much smaller than any reasonable α, it implies that the linear trend model is significant, and hence, the answer is A.

Renton Industries Makes Replacement Parts for the Automobile Industry