Question

The demand for a given product demand is formulated by the linear trend equation: y= 50 – 6t.

Based on this information, when would be the first period that there is NO demand at all for this product?

Select one:

a. period 7

b. period 9

c. period 8

d. period 6

e. period 10

Answer 1

Answer:

Linear trend equation is as under:

y = 50 - 6t

y is the forecast

t is the period

Period (t)	Forecast y = 50 -6t
1	44
2	38
3	32
4	26
5	20
6	14
7	8
8	2
9	-4

As seen the first period when there is no forecast is period 9 (t=9).

y = 50 - 6t

= 50-(6*9) = 50-54

y = - 4

Hence the correct answer is “b. period 9”

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