JetBlue Airlines Revenue, 2008–2015 (millions) |
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Year | Revenue | Year | Revenue | |
2008 | 3,388 | 2012 | 4,982 | |
2009 | 3,286 | 2013 | 5,441 | |
2010 | 3,779 | 2014 | 5,817 | |
2011 | 4,504 | 2015 | 6,416 | |
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(a) Use Excel, MegaStat, or MINITAB to fit both a
linear and an exponential trend to the time series. (Round
your answers to 2 decimal places.)
Linear | yt = t + |
Exponential | yt = e t |
(b) Make annual forecasts for 2016–2018, using the
linear and exponential trend models. (Do not round the
intermediate calculations. Round your final
answers to 2 decimal places.)
t | Linear | Exponential |
9 | ||
10 | ||
11 | ||
(a) The regression is done using Excel. For linear regression, the equation to be fitted is:
For exponential regression, the equation to be fitted is:
t is the time difference from the base year of 2007. This means that 2008 corresponds to t=1 and 2015 corresponds to t=8.
The regression gives the following equations:
Linear | |
Exponential |
(b) Substituting t=9, 10, and 11 in the model equations give:
Time | Linear | Exponential |
9 | 6807.79 | 7220.20 |
10 | 7275.82 | 7990.95 |
11 | 7743.86 | 8843.97 |
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