Suppose the estimated quadratic model Yt = 500 + 20 t - t2 - 9387

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Suppose the estimated quadratic model Yt = 500 + 20 t - t2 is the best-fitting trend of sales of XYZ Inc. using data for the past twenty years (t = 1, 2,.., 20). 

Which statement is incorrect?

A.   Sales are increasing by about 20 units per year.

B.   The turning point would be in period 10.

C.   The trend was higher in year 10 than in year 20.

D.   Latest year sales are no better than in year zero.

 

Solution Description

Suppose the estimated quadratic model Yt = 500 + 20 t - t2 is the best-fitting trend of sales of XYZ Inc. using data for the past twenty years (t = 1, 2,.., 20).