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A linear trend equation for sales of form Qt = a + bt was estimated using yearly sales information for the period 2000 - 2007 (i.e., t = 2000, 2001, ..., 2007). The results of regression are given below:
DEPENDENT QT R Square F Ratio P-Value on FVARIABLE:
OBSERVATIONS: 8 0.7034 14.23 0.0093PARAMETER STANDARDVARIABLE ESTIMATE ERROR T-RATIO P-VALUEINTERCEPT -23,024,200 8,122,205 -2.83 0.0298T 12,045 6075 1.98 0.0947
a. Do the estimates indicate a trend in sales? If so, what is the trend in units per year? Explain.b. What would you forecast sales to be in the year 2008? Explain.c. What would you forecast sales to be in the year 2010? Explain.
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