The Following Trend Line Was Calculated from Quarterly Data for 2006-2010

question 73

Multiple Choice

The following trend line was calculated from quarterly data for 2006-2010: ŷ = 2.35 + 0.12t, where t = 1 for the first quarter of 2006. The seasonal indexes computed from the trend line for the four quarters of the year 2011 are 0.88, 0.93, 1.04, and 1.17, respectively. The seasonalised forecast for the third quarter of the year 2011 is:

• A)5.314.
• B)6.119.
• C)4.286.
• D)4.641.

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