Question

The following table shows a company's annual revenue (in billions of dollars) for 2009 to 2014....

The following table shows a company's annual revenue (in billions of dollars) for 2009 to 2014.

Year Period (t) Revenue ($ billions)
2009 1 23.8
2010 2 29.4
2011 3 37.9
2012 4 50.3
2013 5 59.9
2014 6

66.6

(b)

Develop a linear trend equation for this time series to forecast revenue (in billions of dollars). (Round your numerical values to three decimal places.)

Tt =

12.56+9.154t

  

(c)

What is the average revenue increase per year (in billions of dollars) that this company has been realizing? (Round your answer to three decimal places.)

$   billion

(d)

Compute an estimate of this company's revenue (in billions of dollars) for 2015. (Round your answer to two decimal places.)

$   billion

Homework Answers

Answer #1

using minitab we have

Trend Analysis for Revenue

Data Revenue
Length 6
NMissing 0


Fitted Trend Equation

Yt = 12.86 + 9.083×t


Accuracy Measures

MAPE 4.20249
MAD 1.53048
MSD 2.56914

(b)

Develop a linear trend equation for this time series to forecast revenue (in billions of dollars). (Round your numerical values to three decimal places.)

Tt =12.860+9.083*t

  

(c)

What is the average revenue increase per year (in billions of dollars) that this company has been realizing? (Round your answer to three decimal places.)

$9.083 billion

(d)

Compute an estimate of this company's revenue (in billions of dollars) for 2015. (Round your answer to two decimal places.)

T2015 =12.860+9.083*7=$76.441 billion

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