The Trend Equation for Quarterly Sales Data (In Millions of Dollars)

question 58

Multiple Choice

The trend equation for quarterly sales data (in millions of dollars) for 2001-2005 is $$\ddot{\mathbf{p}}_{t} = 6.8 + 1.2 t$$ , where t = 1 for the first quarter of 2001. The seasonal index for the third quarter of 2006 is 1.25. The forecast sales for the third quarter of 2006 is:

• A)34.40.
• B)27.52.
• C)43.00.
• D)35.65.

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