If the Least Squares Equation for Sales Data Is ŷ

question 146

Multiple Choice

If the least squares equation for sales data is ŷ = 10 + 1.3t ($ millions) , with t = 0 in 1995, what is the
Value of t and the forecast for 2002?

• A) t = 6, y = 17.8
• B) t = 0, y = 10.0
• C) t = 7, y = 19.1
• D) t = 10, y = 0.0
• E) t = 7, y = 9.1

---

Definitions:

Divisional Structure

An organizational structure where operations are divided into separate divisions, each focused on a particular product line, market area, or professional service.

Chief Executive

The highest-ranking officer in an organization, responsible for making major corporate decisions and managing the overall operations.

Consumer Goods

Products and services that are purchased or consumed by individuals or households for personal use.

Departmentalization

The process of dividing an organization into different departments or units, each of which specializes in a specific area of operation.