Question

FORECAST
Years	Patient Srvc Revenue	New Years	Forecasted Reveune
1	$297,591.00	26
2	$330,082.00	27
3	$264,625.00	28
4	$391,927.00	29
5	$167,678.00	30
6	$300,708.00
7	$445,512.00
8	$209,844.00
9	$144,180.00
10	$200,773.00
11	$472,961.00
12	$191,637.00
13	$283,810.00
14	$442,175.00
15	$160,106.00
16	$208,446.00
17	$275,074.00
18	$235,512.00
19	$281,922.00
20	$292,691.00
21	$301,677.00
22	$132,955.00
23	$222,745.00
24	$216,480.00
25	$346,732.00
FORECAST
Forecast the patient service revenue for years 26 through 30 using the prior 25 years of recorded revenues.
Now that you have determined the answer, it is time to provide a 1 or 2 sentence
write up of your answer. In statistics, it is important that you not only get the correct

Answer 1

Here we use MS-EXCEL to forecast the patient service revenue for next 5 years.

X= Years is Independent variable, Y= Patient service revenue is dependent variable

To forecast these values we use EXCEL function :    =forecast(x,known y's,known x's)

26	$241,959.9
27	$239,594.2215
28	$237,228.5431
29	$234,862.8646
30	$232,497.1862

After forecasting we plot (X,Y) values and add trendline as shown in below fig.

From above figure we see that as x increases y decreases i.e. there is decreasing linear trend between x and y.