Question #131

Reading: Reading 1 Multiple Regression

PDF File: Reading 1 Multiple Regression.pdf

Page: 65

Status: Unattempted

Correct Answer: A

Part of Context Group: Q131-134 First in Group
Shared Context
- Which model would be a better choice for making a forecast? A) Model TWO because it has a higher adjusted R2. B) Model TWO because serial correlation is not a problem. C) Model ONE because it has a higher R2.
Question
Using Model ONE, what is the sales forecast for the second quarter of the next year?
Answer Choices:
A. $51.09 million
B. $46.31 million
C. $56.02 million
Explanation
The estimate for the second quarter of the following year would be (in millions): 31.4083 + (−2.4631) + (24 + 2) × 0.851786 = 51.091666.
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