I in the Linear Trend Equation, T Is Any Value

question 61

Multiple Choice

i. In the linear trend equation, t is any value that corresponds with a time period, i.e., month or quarter.
ii. The least squares method of computing the equation for a straight line going through the data of interest gives the "best fitting" line.
Iii) If the sales, production or other data over a period of time tend to approximate a straight-line
Trend, the equation developed by the least squares method cannot be used to forecast sales for a future period.

• A) (i), (ii) and (iii) are all correct statements
• B) (i) and (ii) are correct statements, but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) All statements are false

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Definitions:

Net Assets

The total assets of an organization minus its total liabilities, representing the owners' or shareholders' equity.

Credit Balance

A situation where the amount of credits in an account exceeds the debits, often indicating money owed by the institution to the account holder.

Long-Term Liabilities

Debts or obligations a company owes that are due beyond one year's time, such as bonds payable, long-term leases, or pension obligations.

Common Stock

A type of equity security that represents ownership in a corporation, with holders typically having a vote in corporate matters.