The linear trend 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

The linear trend  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

Quizplus · Accepted Answer

Since the trend is linear, we can use the formula y = a + bx, where y is the value at time period x, a is the intercept and b is the slope of the trend. We are given the trend as 11eaaa34_f6f8_99ab_86f9_c5707b2a6cac_TB2053_11, which can be written as y = 110 + 2x. 
To find the forecasted value for time period 21, we substitute x=21 into the equation: 
y = 110 + 2(21) = 152. 
Therefore, the closest option is D) 162, which is the next closest integer to 152.

The Linear Trend Was Estimated Using a Time Series