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Time Series & Trend · Question 68 of 68

Using the dealer's least-squares trend, what are the expected sales, in hundreds, for 2025?

Question 68

HardOriginal question

A dealer's scooter sales, in hundreds, were 42, 45, 51, 54 and 60 in the five years 2020 to 2024.

Using the dealer's least-squares trend, what are the expected sales, in hundreds, for 2025?

Options for question 68

Show the answer and explanation
CorrectNot quiteAnswer C

Correct answer: C

Explanation

  1. a=2525=50.4a = \frac{252}{5} = 50.4, so the trend is y=50.4+4.5xy = 50.4 + 4.5x.

  2. 2025 is x=3x = 3: 50.4+13.5=63.950.4 + 13.5 = 63.9.

Worth noting

64.5 adds the slope to 2024's actual sales; the forecast comes from the line, not the last value.

Concept
Forecasting from a trend line
Typical time
150 s
Your time
—
The rule this testsA straight-line trend by least squares
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