A Company Has Developed a Linear Trend Regression Model Based

question 123

Multiple Choice

A company has developed a linear trend regression model based on 16 quarters of data.The independent variable is the measure of time (t = 1 thru 16 where quarter 1 is winter quarter,2 is spring,etc.) .The company has also developed seasonal indexes for each quarter as follows: The linear trend forecast equation is: = 120 + 56t. Given this information,what is the seasonally unadjusted forecast for period 19?

• A)1,064
• B)1,184
• C)828.80
• D)986.7

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