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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Definitions:

Fair Value

An estimate of the market value of an asset or liability, based on current conditions and knowledgeable, willing parties' transactions.

Assets And Liabilities

Assets are resources owned by a company that have economic value, while liabilities are obligations the company owes to others, reflecting the company's debts or financial responsibilities.

Unearned Rent Revenue

Income received for rent that has been paid in advance by a tenant but not yet earned by the landlord.

Wages Payable

Wages payable is a liability account that records the amounts owed to employees for work that has been performed but not yet paid.