Question

The following table shows a company's annual revenue (in billions of dollars) for 2009 to 2014 Year Period (t) Revenue ($ billions) 2010 2011 2012 2013 2014 23.8 29.4 38.0 50.1 59.7 66.6 (a) Construct a time series plot 70 60 50 2 40 30 70 60 50 2 40 70 2 40 2 40 30 30 10 10 10 10 What type of pattern exists in the data? The time series plot shows a downward linear trend. O The time series plot shows a downward curvilinear trend. The time series plot shows an upward curvilinear trend. The time series plot shows an upward linear 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.) (d) Compute an estimate of this company's revenue (in billions of dollars) for 2015. (Round your answer to two decimal places.)

Answer 1

Jh tie ends pland curvilimenn teb 8-560 billion 6 24. billion

E MINITAB-Untitled Ble Edit Data Cakc Stat Graph Editor Toos Window Heb Trend Analysis for revenue Data Length 6 NHissing revenue 0 Fitted Trend Equation yt = 12.9 + 9.05714 *t Accuracy Measures MAPE 4.02095 MAD 1.44286 MSD 2.32381 Time revenue Trend Detrend 2009 23.8 21.9571 1.84286 2010 29.4 31.0143 1.61429 2011 38.0 40.0714 -2.07143 2012 50.1 49.1286 0.97143 201359.7 58.1857 1.51429 201466.6 67.2429 -0.64286