Answer D and E are incorrect.

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Question 12

You have been recording the gasoline price at your local gas station over the last three weeks. The following table summarizes the data that you have collected. What is your forecast for the price of gasoline on day 23? Use the appropriate Naive method.

DayPrice13.4622.9933.0143.1553.3563.3173.2583.4292.95102.99113.12123.28133.25143.22153.48163.03173.08183.19193.37203.33213.30223.47

Select one:

a.

3.54 (incorrect)

b.

2.99

c.

3.03

d.

3.11

e.

3.47 (incorrect)

Happy Baby, a maker of baby foods, has found a high correlation between the aggregate company sales (in $100,000 ) and the number of births nationally the preceding year (one year prior). Suppose that the sales and the birth figures during the past eight years are The linear regression equation for "sales in a given year" and "the number of births the preceding year" is calculated as follows: y=4.16x5.85. Forecast the sales in year 9. (Note that the units for all the numerical choices below are in $100,000 s) Select one: a. 46.15 b. 5.8 c. 9.5 d. 31.59 e. Sales in year 9 can not be forecasted since we do not have the birth rate in year 9 . f. 17.5