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. Y?i = 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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In this case, the y-intercept is 1.8. This means that at x = 0, the predicted net sales were $1.8 billion. Show more…
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