The Trend Forecast Equation Is = 120 + 100t

question 50

Multiple Choice

The trend forecast equation is = 120 + 100t. The next forecast is for period 11. The typical seasonal index for period 11 is 0.82. What are the forecast sales for period 11?

• A)1,100
• B)1,220
• C)1,000
• D)640

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Definitions:

WARP

Weak Axiom of Revealed Preference, a theory in economics that assumes if a consumer prefers product A over B when both are available, then they will not choose B when A is available.

Bundle

An assortment of items or services combined and offered for sale as a complete set.

Laspeyres Price Index

A measure of inflation computed by taking the ratio of the total cost of purchasing a specified basket of goods at current prices to the cost of those same goods at base-year prices.

Base Year

A base year is a specific year against which economic or financial data are measured and compared. It often serves as a reference point for calculating indexes and growth rates.