A trend line has been fitted to a company's annual sales.The fitted trend is yt = 50 + 5 xt,where t is the time index (t = 1,2,... ,n)and yt is annual sales (in millions of dollars).What is the forecast for period 13?
A)$125 million
B)$50 million.
C)$97 million
D)$115 million

Question

Quizplus · Accepted Answer

Using the given trend line equation, we plug in xt = 13 to find the forecast for period 13:

yt = 50 + 5(13) = 50 + 65 = 115

Therefore, the forecast for period 13 is $115 million. The correct answer is (D).

A Trend Line Has Been Fitted to a Company's Annual