a causal analysis b non parametric regression c planning gap analysis d

# A causal analysis b non parametric regression c

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• MOW-AL-SABE3
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a. causal analysis b. non-parametric regression c. planning gap analysis d. infinite dimension e. linear trend extrapolation Answer: e Page(s): 213 LO: 6 AACSB: Analytic QD: Easy Rationale: Text term definition—linear trend extrapolation. 8-272 LINEAR TREND EXTRAPOLATION COMPREHENSION Linear trend extrapolation is similar to trend extrapolation except a. the pattern changes from year to year. b. the pattern is always a straight line. - 98 -
c. the slope of the line is tied directly to profits. d. the shape of the pattern is a hyperbola. e. the pattern follows an “S-shaped” curve. Answer: b Page(s): 213-214 LO: 6 AACSB: Analytic QD: Medium Rationale: When the pattern of trend extrapolation is a straight line, it is linear trend extrapolation. Using linear trend extrapolation, you draw a line to fit the past data and project it into the future to give the forecast values. Figure 8-7 8-273 LINEAR TREND EXTRAPOLATION COMPREHENSION Figure 8-7 above depicts what type of statistical forecasting? a. causal analysis b. non-parametric regression c. curvilinear extrapolation d. infinite dimension e. linear trend extrapolation Answer: e Page(s): 213-214 LO: 6 AACSB: Analytic QD: Medium Rationale: Linear trend extrapolation involves extending a pattern observed in past data into the future. When the pattern is described with a straight line, it is linear trend extrapolation, the situation depicted in Figure 8-7. 8-274 LINEAR TREND EXTRAPOLATION COMPREHENSION In Figure 8-7 above, the line identified as “A” indicates a(n) a. causal analysis. b. non-parametric regression. c. curvilinear extrapolation. d. linear trend extrapolation forecast. e. sales regression. - 99 -