1.The correct answer is : 92
y = 7.112 + 3.949x
If x = 19, trend in sales for month 19 = 7.112 + (3.949 x 19) = 82.143
Seasonally-adjusted trend value = 82.143 x 1.12 = 92
If you failed to select the correct option, rework the calculation carefully. You shouldn't have too much trouble with this question since it is just a matter of plugging in a value for x into the equation given in the question.
2.The correct answer is : 300
Ifx = 16, y = 345.12-(1.35 x 16) = 323.52
Forecast = trend + seasonal component = 323.52 - 23.62 = 299.9 = 300 (to nearest unit)
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