i. 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. ii. A straight-line trend equation is used to represent the time series when it is believed that the data is increasing(or decreasing) by equal amounts, on the average, from one period to another.
iii. If the past data approximates a straight line, the equation used is = a + bt, where a is they-intercept and b is the slope of the line.
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.

Question

i. 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. ii. A straight-line trend equation is used to represent the time series when it is believed that the data is increasing(or decreasing) by equal amounts, on the average, from one period to another.
iii. If the past data approximates a straight line, the equation used is  = a + bt, where a is they-intercept and b is the slope of the line.
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.

Quizplus · Accepted Answer

The Answer of i. 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. ii. A straight-line trend equation is used to represent the time series when it is believed that the data is increasing(or decreasing) by equal amounts, on the average, from one period to another.
iii. If the past data approximates a straight line, the equation used is  = a + bt, where a is they-intercept and b is the slope of the line.
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.

I If the Sales, Production or Other Data Over a Period