In Year 3, what are the forecast sales for Year 4?

$2,058

$3,010

$2,769

$3,243 c

2. The forecast for Year 2 (made in Year 1) jumps from $2,058 to a forecast of $3,010 for Year 3 (made in Year 2). The change is so large because

Regression predictions can be misleading and unstable when there are few data points.

The largest year-to-year change in actual sales was from Year 1 to Year 2.

Both of the above reasons are correct.

Neither of the first two reasons is correct. a