Consider the Following Data That Was Fitted Using a Linear

question 29

Multiple Choice

Consider the following data that was fitted using a Linear Trend.
$$\begin{array} { | c | c | c | } \hline \text { Period } & \begin{array} { c } \text { Actual value } \\\text { (or) Y }\end{array} & \begin{array} { c } \text { Period number } \\\text { (or) X }\end{array} \\\hline \text { Period 1 } & 10 & 1 \\\hline \text { Period 2 } & 11 & 2 \\\hline \text { Period 3 } & 9 & 3 \\\hline \text { Period 4 } & 12 & 4 \\\hline \text { Period 5 } & 13 & 5 \\\hline \text { Period 6 } & 12 & 6 \\\hline \text { Period 7 } & 15 & 7 \\\hline\end{array}$$
The intercept of the trend line is 8.714,and the slope is 0.75.What is the forecast for period 8?

• A)13.714
• B)14.714
• C)15.714
• D)16.714
• E)15.75

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Definitions:

Straight-Line Depreciation

A strategy for spreading out the expenditure of a physical asset over the duration of its useful life in uniform annual payments.

Residual Value

The estimated value that an asset will realize upon its sale at the end of its useful life, important in calculating depreciation.

Sales Tax

A sales tax is a government-imposed levy on the sale of goods and services, which is usually a percentage of the retail price.

Freight Charges

Costs associated with the transportation of goods from one location to another, typically paid by the shipper or receiver.