In: Finance
I don't really understand how to estimate revenue. I have been given revenues from previous years and I am being asked to estimate the revenue for FY2020 and explain my rationale. Please help thank you! Please show all relevant work so I can understand how you got to the answer. Thank you!
PS: if possible please use regression including a graph.
Year | Revenue Collections |
2002 | $ 329,687 |
2003 | $ 384,829 |
2004 | $ 378,109 |
2005 | $ 447,858 |
2006 | $ 523,845 |
2007 | $ 621,253 |
2008 | $ 824,460 |
2009 | $ 739,140 |
2010 | $ 821,729 |
2011 | $ 1,035,700 |
2012 | $ 901,902 |
2013 | $ 867,344 |
2014 | $ 857,415 |
2015 | $ 885,966 |
2016 | $ 963,744 |
2017 | $ 1,141,337 |
2018 | $ 1,201,877 |
2019 | $ 1,116,045 |
2020 |
regression equation is
y= 48570x+ 318766
Forecast for 2020 = 48570*19+ 318766 =
1241596.00 |
WORKINGS