Question

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

Year	Period (t)	Revenue ($ billions)
2009	1	23.6
2010	2	29.3
2011	3	37.8
2012	4	50.2
2013	5	59.8
2014	6	66.6

(a)

Construct a time series plot.

  

What type of pattern exists in the data?

The time series plot shows an upward linear trend.

The time series plot shows a downward curvilinear trend.   

  The time series plot shows an upward curvilinear trend.

The time series plot shows a downward linear trend.

(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.)

T_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.)

$  billion

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

$   billion

Answer 1