Given the trend equation ŷ = 25 + 0.6t (t = 0 in 2010), what would be the forecast value for 2014?
A) 2.4
B) 28.0
C) 3.0
D) 32.0
E) 27.4

Question

Quizplus · Accepted Answer

To find the forecast value for 2014, we need to substitute t = 4 (since t = 0 in 2010, and we want to find the value for 2014, which is 4 years later) into the trend equation:
ŷ = 25 + 0.6t
ŷ = 25 + 0.6(4)
ŷ = 25 + 2.4
ŷ = 27.4
Therefore, the forecast value for 2014 is 27.4, which corresponds to answer choice E.

Given the Trend Equation ŷ = 25 + 0