ii A straight line trend equation is used to represent the time series when it

# Ii a straight line trend equation is used to

• 52

This preview shows page 15 - 18 out of 52 pages.

ii. A straight-line trend equation is used to represent the time series when it is believed that thedata is increasing (or decreasing) by equal amounts, on the average, from one period to another.iii. If the past data approximates a straight line, the equation used is = a+ bt, where ais they-intercept and bis the slope of the line. A. (i), (ii) and (iii) are all correct statementsB. (i) and (ii) are correct statements, but not (iii).C. (i) and (iii) are correct statements but not (ii).D.(ii) and (iii) are correct statements but not (i).E. All statements are falseDifficulty: HardLearning Objective: 3 39. i. In the linear trend equation, the letter "b" is the average change in tfor each change of one unit (either increase or decrease) in yii. The least squares method of computing the equation for a straight line going through the data of interest gives the "best fitting" line.iii. A straight-line trend equation is used to represent the time series when it is believed that the data is increasing (or decreasing) by equal amounts, on the average, from one period to another. . Difficulty: HardLearning Objective: 3 16-15 Chapter 16 - Time Series and Forecasting 40. i. In a time series analysis, the letter "a" in the linear trend equation, is the value of when t = 0.ii. In the linear trend equation, tis any value that corresponds with a time period, i.e., month or quarter.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 salesfor a future period. Difficulty: HardLearning Objective: 3 41. i. In the linear trend equation, tis any value that corresponds with a time period, i.e., month or quarter.ii. A straight-line trend equation is used to represent the time series when it is believed that thedata is increasing (or decreasing) by equal amounts, on the average, from one period to another.iii. If the past data approximates a straight line, the equation used is = a+ bt, where ais they-intercept and bis the slope of the line. Difficulty: HardLearning Objective: 3 16-16 Chapter 16 - Time Series and Forecasting  • • • 