The linear trend $\hat { Y } _ { t } = 120 + 2 _ { t }$
Was estimated using a time series with 20 time periods.The forecasted value for time period 21 is
A) 120
B) 122
C) 160
D) 162

Question

Quizplus · Accepted Answer

The linear trend equation is $\hat{Y}_t = 120 + 2t$. For time period 21, substitute $t = 21$ into the equation: $\hat{Y}_{21} = 120 + 2(21) = 120 + 42 = 162$.

The Linear Trend Y^t=120+2t\hat { Y } _ { t } = 120 + 2 _ { t }Y^t​=120+2t​

The Linear Trend $\hat { Y } _ { t } = 120 + 2 _ { t }$