Consider the Regression Equation $\hat { y } = 18.321 + 3.762 ( t )$

question 119

Essay

Consider the regression equation $\hat { y } = 18.321 + 3.762 ( t )$ and the data below: $$\begin{array} { | l | l | } \hline \text { Time Period } ( t ) & \text { Sales } ( \hat { y } ) \\\hline 1 & 22 \\\hline 2 & 27 \\\hline 3 & 23 \\\hline 4 & 31 \\\hline 5 & 45 \\\hline 6 & 47 \\\hline 7 & 45 \\\hline 8 & 42 \\\hline\end{array}$$
-Compute the predicted value for sales for period 6 and 7.

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Definitions:

Straight-Line Method

A method of calculating depreciation of an asset which assumes the asset will lose an equal amount of value each year over its useful life.

Declining-Balance

A method of accelerated asset depreciation where the depreciation expense decreases over time.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the asset's wear and tear or obsolescence.

Depreciation Produces

An accounting process that allocates the cost of a tangible asset over its useful life, thus producing a systematic reduction in value to reflect wear and tear or obsolescence.