Renton Industries makes replacement parts for the automobile industry.As part of the company's capacity planning,it needs a long-range total demand forecast.The following information was generated based on 10 years of historical data on total number of parts sold each year. Based on this information,the percent of variation in the number of parts sold that is explained by the linear trend model is approximately 90.9.

Question

Renton Industries makes replacement parts for the automobile industry.As part of the company's capacity planning,it needs a long-range total demand forecast.The following information was generated based on 10 years of historical data on total number of parts sold each year.  Based on this information,the percent of variation in the number of parts sold that is explained by the linear trend model is approximately 90.9.

Quizplus · Accepted Answer

The given information states that the linear trend model explains approximately 90.9 percent of the variation in the number of parts sold, which suggests a strong relationship between time and the demand for parts. Therefore, the statement is true.

Renton Industries Makes Replacement Parts for the Automobile Industry