Question

For a given product demand, the time-series trend equation is 53 - 4 x. The negative sign on the slope of the equation:

a. is a mathematical impossibility.
b. is an indication that the forecast is biased, with forecast values lower than actual values.
c. is an indication that product demand is declining.
d. implies that the coefficient of determination will also be negative.
e. implies that the cumulative error will be negative.

Answer 1

Answer: is an indication that product demand is declining.

Step-by-step explanation:

The negative sign on the slope of the time-series trend equation simply explains that the product demand is declining.

A negative slope indicates that two variables are negatively related which implies that when the value of x increases, rhen the value of y decreases, and vice versa. When putting this in a graph, the line falls when the line that's on the line graph shifts from left to right.

The correct option is C