A company has recorded 12 months of sales data for the past year and has found the linear trend equation is = 286 + 64.9t.Based on this information,which of the following is the forecast for period 13?
A)3718
B)842.4
C)350.8
D)1128.4

Question

A company has recorded 12 months of sales data for the past year and has found the linear trend equation is  = 286 + 64.9t.Based on this information,which of the following is the forecast for period 13?
A)3718 
B)842.4 
C)350.8 
D)1128.4

Quizplus · Accepted Answer

Using the linear trend equation, we can find the forecast for period 13 by substituting t=13 into the equation:

11ea7a43_ea18_4d98_89bd_01275eedd5d1_TB3933_11 = 286 + 64.9(13)
= 286 + 843.7
= 1129.7

Therefore, the forecast for period 13 is 1129.7, which is closest to option D (1128.4).

A Company Has Recorded 12 Months of Sales Data for the Past