For a Given Product Demand, the Time Series Trend Equation

question 86

Multiple Choice

For a given product demand, the time series trend equation is 53 - 4 X. The negative sign on the slope of the equation

• A) is a mathematical impossibility
• B) is an indication that the forecast is biased, with forecast values lower than actual values
• C) is an indication that product demand is declining
• D) implies that the coefficient of determination will also be negative
• E) implies that the cumulative error will be negative

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