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I in the Linear Trend Equation, T Is Any Value

question 23

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i. In the linear trend equation, t is any value that corresponds with a time period, i.e., month or quarter. ii. The least squares method of computing the equation for a straight line going through the data of interest gives the "best fitting" line.
iii. If the sales, production or other data over a period of time tend to approximate a straight-line trend, the equation developed by the least squares method cannot be used to forecast sales for a future period.


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