Exhibit 11.10 The following questions use the data below. Joe's Sporting Goods wants to forecast quarterly sales figures using a quadratic trend model. The store has collected 12 quarters of data and needs your help to analyze the data. The relevant regression output is in the following table. -Refer to Exhibit 11.10. How is a quadratic term added to the problem if we want to develop a quadratic trend model? A) Add a column containing Time². B) Add a column containing Actual Sales². C) Increase the Input X Range in the Regression command settings dialog box. D) Square the coefficient for Time in the regression model.

Question

Quizplus · Accepted Answer

To develop a quadratic trend model, a quadratic term is added by including a column containing the product of the Time variable and its squared value, which is represented as Time^2. This is achieved by adding a column containing Time², where ² represents the squared value of Time.

Exhibit 11.10 The Following Questions Use the Data Below