The Trend Equation for Quarter Sales Data (In Millions of Dollars)for

question 39

Multiple Choice

The trend equation for quarter sales data (in millions of dollars) for 2011-2015 is given by $\tilde { y } _ { t }$ = 6.8 + 1.2t,where t = 1 for the first quarter of 2011.The seasonal index for the third quarter of 2008 is 1.25.The forecasted sales' value for the third quarter of 2016 is:

• A) 34.40
• B) 27.52
• C) 43.00
• D) 35.65

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Definitions:

Investment Opportunity

A time-sensitive potential for investment that promises a probable return on the capital invested.

Similar Risk

Investment scenarios where the level of risk is comparable across different assets or projects.

Discount Rate

This term is used in various contexts but generally refers to the interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Present Value

The present worth of a future total amount of money or series of cash inflow, based on a particular return rate.