i. In a time series analysis, the letter "a" in the linear trend equation, is the value of when t = 0.
ii. In the linear trend equation, t is any value that corresponds with a time period, i.e., month or
Quarter.
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) (i) , (ii) , and (iii) are all false statements.
Correct Answer:
Verified
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