Question

The general fund budget for a state for 1988 (Period 1) to 2011 (Period 24) follows. vau AWN Year Period Budget ($billions) 1988 1 3.05 1989 3.29 1990 3 3.56 1991 4.31 1992 4.39 1993 4.54 1994 4.66 1995 5.19 1996 5.35 1997 5.69 1998 6.01 1999 12 2000 6.48 2001 6.65 2002 15 6.56 2003 6.78 2004 6.98 2005 18 2006 8.38 2007 8.57 2008 21 8.66 2009 8.43 2010 23 8.23 2011 24 8.76 6.2 7.65 a. Which of the following is the correct time series plot? What type of pattern exists in the data? Scatter diagram a

Answer 1

9 6 here ti perlod - Tt budget points fe ( t,Tc) = (1, 3.05),(2, 3.29) scatter diagramb, the time series plot indicates a horizontal pattern so lets cinear function y It = mttb put points (1, 3.05) 3.05 = mtb at (2, 3.29) - 3.29 = 2mtb solving these equations me 0.24 $b = 2181 so linear trend equation [It = 0.24€ +2.81 t=25 for 2012 so budget Tt = 0.24x2 5 + 2.81 It = $8.81