Question

The general fund budget (in billions of dollars) for a U.S. state for 1988 (period 1) to 2011 (period 24) follows.

Year	Period	Budget ($ billions)
1988	1	3.03
1989	2	3.29
1990	3	3.56
1991	4	4.41
1992	5	4.36
1993	6	4.61
1994	7	4.75
1995	8	5.15
1996	9	5.34
1997	10	5.66
1998	11	6.01
1999	12	6.20
2000	13	6.58
2001	14	6.75
2002	15	6.56
2003	16	6.88
2004	17	6.98
2005	18	7.65
2006	19	8.48
2007	20	8.57
2008	21	8.76
2009	22	8.43
2010	23	8.23
2011	24	8.86

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

T_t = ____

(c)What is the forecast (in billions of dollars) for period 25? (Round your answer to two decimal places.)

$____ billion

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	29.3
2011	3	38.0
2012	4	50.2
2013	5	59.8
2014	6	66.8

(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

Answer 1

using minitab>stat>Time series>trend analysis

we have

Trend Analysis for Budget

Data Budget
Length 24
NMissing 0

Fitted Trend Equation

Yt = 3.038 + 0.25392×t

Accuracy Measures

MAPE 3.86548
MAD 0.23538
MSD 0.08389

(b)

Tt = 3.038 + 0.254×t

(c) the forecast (in billions of dollars) for period 25 is 3.038 + 0.254×25=

$9.39 billion

Ans ) using minitab>stat>Time series>trend analysis

we have

Trend Analysis for Revenue ($ billions)

Data Revenue ($ billions)
Length 6
NMissing 0

Fitted Trend Equation

Yt = 12.78 + 9.106×t

Accuracy Measures

MAPE 4.12246
MAD 1.46762
MSD 2.41990

(b)

Tt =12.78 + 9.106×t

(c) the average revenue increase per year (in billions of dollars) that this company has been realizing is

$ 9.106 billion