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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Definitions:

Cognitive

Relates to the processes of the mind involved in learning, thinking, reasoning, and understanding.

Affective

Pertains to emotions or feelings often used in the context of consumer reactions to products or brands.

Behavioral

Relating to or concerned with the actions or activities of organisms in response to external or internal stimuli.

Limited Problem Solving

A consumer decision-making process used for purchases that require a moderate amount of effort and time for information gathering and deliberation.