Exhibit 11.10
The following questions use the data below.
Joe's Sporting Goods wants to forecast quarterly sales figures using a quadratic trend model. The store has collected 12 quarters of data and needs your help to analyze the data. The relevant regression output is in the following table.
-Refer to Exhibit 11.10. What formula should be entered in cell F3 to compute the quadratic trend for year 1 Quarter 1?
A) = 263.4545 * C3 + 5.985514 * D3 + 4.922577
B) = 263.4545 + 5.985514 * D3 + 4.922577 * C3
C) = 263.4545 + 5.985514 * C2 + 4.922577 * D2
D) = 263.4545 + 5.985514 * C3 + 4.922577 * D3

Question

Exhibit 11.10
The following questions use the data below.
Joe's Sporting Goods wants to forecast quarterly sales figures using a quadratic trend model. The store has collected 12 quarters of data and needs your help to analyze the data. The relevant regression output is in the following table.  
-Refer to Exhibit 11.10. What formula should be entered in cell F3 to compute the quadratic trend for year 1 Quarter 1?
A) = 263.4545 * C3 + 5.985514 * D3 + 4.922577 
B) = 263.4545 + 5.985514 * D3 + 4.922577 * C3 
C) = 263.4545 + 5.985514 * C2 + 4.922577 * D2 
D) = 263.4545 + 5.985514 * C3 + 4.922577 * D3

Quizplus · Accepted Answer

To compute the quadratic trend for year 1 Quarter 1, we need to use the quadratic trend model equation: Y = a + bX + cX^2. From the regression output, we can see that a = 263.4545, b = 5.985514, and c = 4.922577. Since Quarter 1 corresponds to the first value of X (C3), we plug in X = C3, which gives: Y = 263.4545 + 5.985514 * C3 + 4.922577 * C3^2. Therefore, the formula that should be entered in cell F3 is = 263.4545 + 5.985514 * C3 + 4.922577 * C3^2.

Exhibit 11.10 The Following Questions Use the Data Below