A company has developed a linear trend regression model based on 16 quarters of data. The independent variable is the measure of time (t = 1 thru 16 where quarter 1 is winter quarter, 2 is spring, etc.). The company has also developed seasonal indexes for each quarter as follows: The linear trend forecast equation is: = 120 + 56t. Given this information, which of the four quarters beginning next winter (period t = 17) will have the highest seasonally adjusted forecast?
A) Winter
B) Spring
C) Summer
D) Fall

Question

A company has developed a linear trend regression model based on 16 quarters of data. The independent variable is the measure of time (t = 1 thru 16 where quarter 1 is winter quarter, 2 is spring, etc.). The company has also developed seasonal indexes for each quarter as follows:  The linear trend forecast equation is: = 120 + 56t. Given this information, which of the four quarters beginning next winter (period t = 17) will have the highest seasonally adjusted forecast?
A) Winter 
B) Spring 
C) Summer 
D) Fall

Quizplus · Accepted Answer

The Answer of A company has developed a linear trend regression model based on 16 quarters of data. The independent variable is the measure of time (t = 1 thru 16 where quarter 1 is winter quarter, 2 is spring, etc.). The company has also developed seasonal indexes for each quarter as follows:  The linear trend forecast equation is: = 120 + 56t. Given this information, which of the four quarters beginning next winter (period t = 17) will have the highest seasonally adjusted forecast?
A) Winter 
B) Spring 
C) Summer 
D) Fall

A Company Has Developed a Linear Trend Regression Model Based