What Is This Year's Forecast Using the Least Squares Trend

question 53

Multiple Choice

What is this year's forecast using the least squares trend line for these data?

• A)20,000
• B)21,000
• C)22,000
• D)23,000
• E)24,000

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Definitions:

Prediction Interval Estimate

A prediction interval estimate is a range of values that is likely to include the value of a single new observation predicated on the existing data set.

Confidence Interval Estimate

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter at a specified confidence level.

Average Regression Interval

Average regression interval describes the range within which the average value of the dependent variable falls, based on a linear regression model.

X Versus Y Correlation Interval

A range of values that estimates the strength and direction of the linear relationship between two variables.