Question

The following table shows a company's annual revenue (in billions of dollars) for 2009 to 2014. Period (t) Revenue ($ billions) 23.6 Year 2009 2010 2011 2 29.4 3 37.8 2012 50.3 2013 2014 59.9 66.5 6 (a) Construct a time series plot. Revenue ($ billions) Revenue ($ billions) Revenue ($ billions) Revenue ($ billions) 30+ T EST BOUNCE 20+ m o ITETEN 0+ + + 0 2 3 4 5 6 7 Period Period Period What type of pattern exists in the data? The time series plot shows an upward linear trend. The time series plot shows a downward linear trend. The time series plot shows an upward curvilinear trend. The time series plot shows a downward curvilinear 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.) (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.) $0 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

@ ti 1 2 3 4 5 6 Revenue ; 23.6 29.4 37.8 50.3 5909 660 6 On Plotting the data we get i 2 3 4 Š 6 7. 1 0 ght us cu с um o Auswer is Plot @ The time series plot shows an upward linear drend. This is because we obtain an upevared in dinn The Trend Equation to forecast Perenner is givers as TE= atbt + c where u is weer win and a & b are estimated using - Prusciple of least squares heo by minimising zur id mais Zu? - mis cTt-a-bt) 2 The estimates of a and b are given as . b = 267 +- Ft) (tt) Elt-t2 å = Tt - Ô where P yo lart equazcTe-a-bt)? mu t OM Scanned with CamScanner

А 80, = 9-1143 and T. = 4-6 ,t = 3* 5 80, 4 = 1291 oo, Trend Equations is gives as a Ft = 1207+ g.114t. зи оламнаас малыг саломыя ре» и смо и мало ва в So, dnswми й 9 •14 . О Revenue for 2015 i.e. fort=7 » Т = ja» 7 + 9-14 х2 Т - 76 « 498 ~ 16 • 50 GS Scanned with CamScanner