Author Question: The most useful tool to identify the trend component of a time series is A) moving averages. B) ... (Read 226 times)

serike · **on:** Jun 24, 2018

The most useful tool to identify the trend component of a time series is

A) moving averages.
B) exponential smoothing.
C) regression analysis.
D) the MAD approach.

Question 2

A company has developed a linear trend regression model based on 16 quarters of data. The independent variable is the measure of time (t = 1 thru 16 where quarter 1 is winter quarter, 2 is spring, etc.).

The company has also developed seasonal indexes for each quarter as follows:

Winter Spring Summer Fall
1.20 1.00 0.70 1.10

The linear trend forecast equation is: y= 120 + 56t.
Given this information, what is the seasonally unadjusted forecast for period 19?
A) 1,064
B) 1,184
C) 828.80
D) 986.7