Question

a. Obtain the linear trend equation for the following data on new checking accounts at Fair Savings Bank and use it to predict expected new checking accounts for periods 16 through 19. (Round your intermediate calculations and final answers to 2 decimal places.)

Period	New Accounts	Period	New Accounts	Period	New Accounts
1	200	6	237	11	281
2	212	7	249	12	275
3	211	8	250	13	287
4	222	9	255	14	288
5	235	10	267	15	313

Y	=		+	t
Y16	=
Y17	=
Y18	=
Y19	=

b.Use trend-adjusted smoothing with α = .2 and β = .1 to smooth the new account data in part a. What is the forecast for period 16? Compute the initial trend estimate (T_t) for Period 5 as follows: (Period 4 data – Period 1 data) / 3. Then compute the initial trend-adjusted forecast (TAF_t) for Period 5 as follows: Period 4 data + Initial trend estimate for Period 5. Then compute all remaining values (including the S_t value for Period 5) using the textbook formulas or Excel template. (Round the "Trend"values (Tt) to 3 decimal places and all other intermediate forecast values (TAFt and St) to 2 decimal places. Round your final answer to 2 decimal places.)

Forecast for period 16_____   

Answer 1

Dear student, we cannot able to post solution more than one question as per our policy.

	Period (t)	New Accounts (Y)	t2	tY
	1	200	1	200
	2	212	4	424
	3	211	9	633
	4	222	16	888
	5	235	25	1175
	6	237	36	1422
	7	249	49	1743
	8	250	64	2000
	9	255	81	2295
	10	267	100	2670
	11	281	121	3091
	12	275	144	3300
	13	287	169	3731
	14	288	196	4032
	15	313	225	4695
Total	120	3782	1240	32299
Sign	Σt	ΣY	Σt2	ΣtY

b = [N (ty) – Et EY] /[N (t) - (Et) 2] b = [15*32299 - 120*3782] /[15*1240 - 120°) b = [484485-453840] / [18600 - 14400] b= 30645 / 4200 b = 7.30 a= [ZY -b Et] /N a= [3782 - 7.30*120] / 15 a= [3782-876] / 15 a=2906 / 15 a= 193.73 Y=a+bt Y=193.7347.30t 193.73 + 7.30 t expected accounts 311 318 193.73 193.73 193.73 193.73 7.30 7.30 7.30 7.30 *16 *17 *18 *19 325 332