If a time-series trend equation is expressed as 25.3 + 2.1X, what is the forecast for period 7?

Disable ads (and more) with a membership for a one time $4.99 payment

Prepare for the UCF supply chain midterm. Utilize flashcards, multiple choice questions, and detailed explanations. Ace your test with these comprehensive study tools!

To find the forecast for period 7 using the time-series trend equation given, substitute the value of X with 7 in the equation 25.3 + 2.1X. The equation indicates that 25.3 is the base value when X equals 0, and 2.1 represents the increase in the forecast for each unit increase in X.

Calculating the forecast involves the following steps:

  1. Substitute X with 7: 25.3 + 2.1(7)

  2. Calculate the product of 2.1 and 7: 2.1 * 7 = 14.7

  3. Add this result to the base value: 25.3 + 14.7 = 40

Thus, the forecast for period 7 is 40. This calculation aligns with the trend represented by the equation, confirming the forecast accurately reflects the progression projected by the trend line.

More Multiple Choice Questions