Question: A manager uses the following linear regression equation to predict monthly sales of books: Y = 50,000 + 125t Where t and Y refers to
A manager uses the following linear regression equation to predict monthly sales of books:
Y = 50,000 + 125t
Where t and Y refers to the time period and sales respectively.
1. What is the forecast for July of next year if t = 0 is April of this year?
| 50,000 | ||
| 51,875 | ||
| 51,900 | ||
| None of the other options are correct | ||
| 52,000 |
2. The sales of books are:
| None of the other options are correct | ||
| Going up at a rate of 125 monthly | ||
| Going up at a rate of 50,000 yearly | ||
| staying the same | ||
| Going down at a rate of 125 yearly |
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