The Trend Equation for Quarterly Sales Data (In Millions of Dollars)

Multiple Choice

The trend equation for quarterly sales data (in millions of dollars) for 2001-2005 is $$\ddot{\mathbf{p}}_{t} = 6.8 + 1.2 t$$ , where t = 1 for the first quarter of 2001. The seasonal index for the third quarter of 2006 is 1.25. The forecast sales for the third quarter of 2006 is:

A) 34.40.
B) 27.52.
C) 43.00.
D) 35.65.