A Company Has Developed a Linear Trend Regression Model Based

question 81

Multiple Choice

A company has developed a linear trend regression model based on 16 quarters of data. The independent variable is the measure of time (t = 1 thru 16 where quarter 1 is winter quarter, 2 is spring, etc.) . The company has also developed seasonal indexes for each quarter as follows: The linear trend forecast equation is: = 120 + 56t. Given this information, which of the four quarters beginning next winter (period t = 17) will have the highest seasonally adjusted forecast?

• A) Winter
• B) Spring
• C) Summer
• D) Fall

---

Definitions:

Lactase Retention

The continued production of the enzyme lactase into adulthood, allowing for the digestion of lactose found in milk; varies genetically among populations.

Herding

The practice of raising and managing groups of domesticated animals, often large herds of livestock, moved from place to place to graze on pasture.

Fishing

The act of catching fish from water bodies like rivers, lakes, or the ocean, either for sustenance, sport, or commercial purposes.

Foraging

The act of searching wide areas for food or provisions, typical of hunter-gatherer societies.