Question #66

Reading: Reading 2 Time-Series Analysis

PDF File: Reading 2 Time-Series Analysis.pdf

Page: 32

Status: Unattempted

Part of Context Group: Q66-67 First in Group
Shared Context
- With respect to the possible problems of autocorrelation and nonstationarity, using the log- linear transformation appears to have: A) not improved the results for either possible problems. B) improved the results for nonstationarity but not autocorrelation. C) improved the results for autocorrelation but not nonstationarity.
Question
Using the simple linear trend model, the forecast of sales for Very Vegan for the first out-of- sample period is:
Answer Choices:
A. $97.6 million
B. $113.0 million
C. $123.0 million
Explanation
The forecast is 10.0015 + (13 × 6.7400) = 97.62.
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