Question

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.)

T_t =

(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.)

T_t =

(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

Answer 1

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)