Suppose a firm has had the historical sales figures shown below. What would be the forecast for next year's sales using regression to estimate a trend?
A) $850,000
B) $860,000
C) $861,500
D) $874,000

Question

Suppose a firm has had the historical sales figures shown below. What would be the forecast for next year's sales using regression to estimate a trend? 
A) $850,000 
B) $860,000 
C) $861,500 
D) $874,000

Quizplus · Accepted Answer

By using trend regression on the historical sales figures, the forecast for next year's sales is $861,500, which is the value of the slope coefficient multiplied by the next year's year value plus the intercept.

Suppose a Firm Has Had the Historical Sales Figures Shown