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

Question

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

Quizplus · Accepted Answer

Statement (i) is correct as 't' represents time periods in a linear trend equation. Statement (ii) is correct because the least squares method provides the best-fitting line for the data. Statement (iii) is incorrect because the least squares method can indeed be used to forecast future sales if the data approximates a straight-line trend.

I in the Linear Trend Equation, T Is Any Value