Identify the Components of Simple Linear Regression Models and Discuss

question 16

Multiple Choice

Identify the components of simple linear regression models and discuss their applications Use the data given below to answer the following question(s) .
The worldwide sales of cars from 1981-1990 are shown in the table below. Given: α = 0.2 and β
= 0.15 (Hint: Use XLMiner) $$\begin{array} { | c | c | } \hline \text { Year } & \begin{array} { c } \text { Units sold in } \\\text { thousands }\end{array} \\\hline 1981 & 888 \\\hline 1982 & 900 \\\hline 1983 & 1000 \\\hline 1984 & 1200 \\\hline 1985 & 1100 \\\hline 1986 & 1300 \\\hline 1987 & 1250 \\\hline 1988 & 1150 \\\hline 1989 & 1100 \\\hline 1990 & 1200 \\\hline\end{array}$$
-Using the double exponential smoothing, calculate the value of the mean absolute deviation for the given data.

• A) 8.10
• B) 1.80
• C) 91.27
• D) 11976.17

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Definitions:

Amortization

The process of gradually writing off the initial cost of an intangible asset over a period, reflecting its consumption, expiration, or obsolescence.

Depreciation Adjustment

A financial reporting mechanism to allocate the cost of a tangible asset over its useful life.

Intra-Entity Asset Transfers

Transactions involving the transfer of assets from one segment of an organization to another within the same entity.

Excess Amortizations

Amortization expenses that are higher than what is considered normal or expected, often due to aggressive repayment of debt or intangible assets.