Question

# JetBlue Airlines Revenue, 2008–2015 (millions) Year Revenue Year Revenue 2008 3,388 2012 4,982 2009 3,286 2013...

 JetBlue Airlines Revenue, 2008–2015 (millions) 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

(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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