The linear trend forecasting equation for an annual time series containing 44 values (from 1964 to 2007) on net sales (in billions of dollars) is shown below. Complete (a) through (e) below.\\ $Y_t = 25 + 0.7X_t$\ a. Intepret the Y-intercept, $b_0$. Which statement below is the interpretation of the Y-intercept?\\ A. The Y-intercept $b_0 = 2.5$ reflects the predicted net sales in 1964.\ B. The Y-intercept $b_0 = 0.7$ indicates that sales are predicted to increase by $0.7 billion/year.\ C. The Y-intercept $b_0 = 2.5$ indicates that sales are predicted to increase by $2.5 billion/year.\ D. The Y-intercept $b_0 = 0.7$ reflects the predicted net sales in 1964.
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In this case, the Y-intercept is 25. This means that when X (year) is 0, the predicted net sales is 25 billion dollars. Show more…
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The linear trend forecasting equation for an annual time series containing 39 values (from 1968 to 2006) on net sales (in billions of dollars) is shown below. Complete (a) through (e) below. Ŷi = 1.8 + 1.1Xi a. Intepret the Y-intercept, b0. Which statement below is the interpretation of the Y-intercept? A. The Y-intercept b0 = 1.1 reflects the predicted net sales in 1968. B. The Y-intercept b0 = 1.8 indicates that sales are predicted to increase by $1.8 billion/year. C. The Y-intercept b0 = 1.8 reflects the predicted net sales in 1968. D. The Y-intercept b0 = 1.1 indicates that sales are predicted to increase by $1.1 billion/year. Click to select your answer and then click Check Answer.
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The linear trend forecasting equation for an annual time series containing 39 values (from 1966 to 2004) on total revenue (in billions of dollars) is shown below. Complete (a) through (e) below. Yi = 1.5 + 1.9Xi a. Interpret the Y-intercept, b0. Which statement below is the interpretation of the Y-intercept? A. The Y-intercept b0 = 1.9 reflects the predicted total revenue in 1966. B. The Y-intercept b0 = 1.5 reflects the predicted total revenue in 1966. C. The Y-intercept b0 = 1.9 indicates that the revenue is predicted to increase by $1.9 billion/year. D. The Y-intercept b0 = 1.5 indicates that the revenue is predicted to increase by $1.5 billion/year. b. Interpret the slope, b1. Which statement below is the interpretation of the slope? A. The slope b1 = 1.9 reflects the predicted total revenue in 1966. B. The slope b1 = 1.9 indicates that the revenue is predicted to increase by $1.9 billion/year. C. The slope b1 = 1.5 reflects the predicted total revenue in 1966.
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