Question

In: Statistics and Probability

The general fund budget (in billions of dollars) for a U.S. state for 1988 (period 1)...

The general fund budget (in billions of dollars) for a U.S. state for 1988 (period 1) to 2011 (period 24) follows.

Year Period Budget
($ billions)
1988 1 3.03
1989 2 3.29
1990 3 3.56
1991 4 4.41
1992 5 4.46
1993 6 4.61
1994 7 4.65
1995 8 5.15
1996 9 5.34
1997 10 5.66
1998 11 6.01
1999 12 6.20
2000 13 6.48
2001 14 6.75
2002 15 6.56
2003 16 6.78
2004 17 7.08
2005 18 7.65
2006 19 8.48
2007 20 8.57
2008 21 8.76
2009 22 8.53
2010 23 8.33
2011 24 8.76

Develop a linear trend equation for this time series to forecast the budget (in billions of dollars). (Round your numerical values to three decimal places.)

Tt =

(c) What is the forecast (in billions of dollars) for period 25? (Round your answer to two decimal places.)

$  billion

A certain company produces and sells frozen pizzas to public schools throughout the eastern United States. Using a very aggressive marketing strategy, they have been able to increase their annual revenue by approximately $10 million over the past 10 years. But increased competition has slowed their growth rate in the past few years. The annual revenue, in millions of dollars, for the previous 10 years is shown.

Year Revenue
1 8.43
2 10.74
3 12.98
4 14.11
5 16.21
6 17.31
7 18.37
8 18.45
9 18.40
10 18.53

Using Minitab or Excel, develop a quadratic trend equation that can be used to forecast revenue (in millions of dollars). (Round your numerical values to three decimal places.)

Tt =

(c) Using the trend equation developed in part (b), forecast revenue (in millions of dollars) in year 11. (Round your answer to two decimal places.)

$  million

Solutions

Expert Solution

1)

a) Tt =3.031+0.255t

c)

forecast =3.031+0.255*25 =9.41 (please try 9.39 if this comes incorrect)

2)

a)
Tt =5.59+2.91*t-0.16t2

c)

predicted value =5.59+2.91*11-0.16*11^2= 17.97 (please try 18.24 if this comes wrong and reply)


Related Solutions

The general fund budget (in billions of dollars) for a U.S. state for 1988 (period 1)...
The general fund budget (in billions of dollars) for a U.S. state for 1988 (period 1) to 2011 (period 24) follows. Year Period Budget ($ billions) 1988 1 3.03 1989 2 3.29 1990 3 3.56 1991 4 4.41 1992 5 4.46 1993 6 4.61 1994 7 4.65 1995 8 5.15 1996 9 5.34 1997 10 5.66 1998 11 6.01 1999 12 6.20 2000 13 6.48 2001 14 6.75 2002 15 6.66 2003 16 6.78 2004 17 7.08 2005 18 7.65...
The general fund budget (in billions of dollars) for a U.S. state for 1988 (period 1)...
The general fund budget (in billions of dollars) for a U.S. state for 1988 (period 1) to 2011 (period 24) follows. Year Period Budget ($ billions) 1988 1 3.03 1989 2 3.29 1990 3 3.56 1991 4 4.31 1992 5 4.46 1993 6 4.61 1994 7 4.65 1995 8 5.15 1996 9 5.34 1997 10 5.66 1998 11 6.11 1999 12 6.20 2000 13 6.58 2001 14 6.75 2002 15 6.56 2003 16 6.88 2004 17 7.08 2005 18 7.65...
The general fund budget (in billions of dollars) for a U.S. state for 1988 (period 1)...
The general fund budget (in billions of dollars) for a U.S. state for 1988 (period 1) to 2011 (period 24) follows. Year Period Budget ($ billions) 1988 1 3.03 1989 2 3.29 1990 3 3.56 1991 4 4.41 1992 5 4.36 1993 6 4.51 1994 7 4.65 1995 8 5.15 1996 9 5.34 1997 10 5.66 1998 11 6.01 1999 12 6.30 2000 13 6.58 2001 14 6.75 2002 15 6.56 2003 16 6.78 2004 17 6.98 2005 18 7.65...
Recording the budget in the General Fund? Recording purchase orders or contracts in the General Fund?
Recording the budget in the General Fund? Recording purchase orders or contracts in the General Fund?
California issued debt (general obligation bonds) to fund the state budget and must now repay what...
California issued debt (general obligation bonds) to fund the state budget and must now repay what it borrowed. Given the facts above, please indicate if you think that California’s debt is more likely to be internal or external. How do you know? Furthermore, is the repayment of state and local government debt likely to drain purchasing power from citizens in those areas?
Comprehensive General Fund Review The Wayne City Council approved and adopted its general fund budget for...
Comprehensive General Fund Review The Wayne City Council approved and adopted its general fund budget for 2020. The budget contained the following amounts: Estimated revenues $70,000,000 Appropriations 66,000,000 Estimated transfers in 1,000,000 Estimated transfers out 6,000,000 During 2020, various transactions and events occurred which affected the general fund. The legal budgetary basis is used. Required For items 1–40, indicate whether the item should be debited (D), credited (C), or is not affected (N) in the general fund. a. Items 1–5...
Consider the following data on U.S. GDP: Year Nominal GDP GDP Deflator (Billions of dollars) (Base...
Consider the following data on U.S. GDP: Year Nominal GDP GDP Deflator (Billions of dollars) (Base year 2009) 2017 19,485 107.95 1997 8,578 74.45 The growth rate of nominal GDP between 1997 and 2017 was _______, and the growth rate of the GDP deflator between 1997 and 2017 was ______. (Hint: The growth rate of a variable XX over an NN-year period is calculated as 100×((XfinalXinitial)(1N)−1)100×XfinalXinitial1N−1) Measured in 2009 prices, real GDP was ______billion in 1997 and ______billion in 2017....
Exponential Functions Computer viruses have cost U.S. companies billions of dollars in damages and lost revenues...
Exponential Functions Computer viruses have cost U.S. companies billions of dollars in damages and lost revenues over the last few years. One factor that makes computer viruses so devastating is the rate at which they spread. A virus can potentially spread across the world in a matter of hours depending on its characteristics and whom it attacks. Consider the growth of the following virus. A new virus has been created and is distributed to 100 computers in a company via...
The Town of Tyler approved the following general fund budget for the fiscal year July 1,...
The Town of Tyler approved the following general fund budget for the fiscal year July 1, 2011, to June 30, 2012: TOWN OF TYLER GENERAL FUND BUDGET SUMMARY FOR THE YEAR JULY 1, 2011 TO JUNE 30, 2012 Revenue Sources Taxes $250,000 Licenses and permits 20,000 Intergovernmental revenue 40,000 Charges for services 60,000 Fines and forfeits 15,000 Rents and royalties 10,000 Miscellaneous revenues 5,000 Total budgeted revenues $400,000 TOWN OF TYLER GENERAL FUND BUDGET SUMMARY FOR THE YEAR JULY 1,...
Recording General Fund Operating Budget and Operating Transactions. The Town of Bedford Falls approved a General...
Recording General Fund Operating Budget and Operating Transactions. The Town of Bedford Falls approved a General Fund operating budget for the fiscal year beginning on July 1. The budget provides for estimated revenues of $2,700,000 as follows: property taxes, $1,900,000; licenses and permits, $350,000; fines and forfeits, $250,000; and intergovernmental (state grants), $200,000. The budget approved appropriations of $2,650,000 as follows: General Government, $500,000; Public Safety, $1,600,000; Public Works, $350,000; Culture and Recreation, $150,000; and Miscellaneous, $50,000. a.Prepare the journal...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT