In: Statistics and Probability
Problem 3-9
a. |
Obtain the linear trend equation for the following data on new checking accounts at Fair Savings Bank and use it to predict expected new checking accounts for periods 16 through 19. (Round your intermediate calculations and final answers to 2 decimal places.)
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Solution:
a) Y = 192.82 + 7.31t
Y16= 192.82 + 7.31 * 16 = 309.78
Y17= 192.82 + 7.31 * 17 = 317.09
Y18= 192.82 + 7.31 * 18 = 324.4
Y19= 192.82 + 7.31 * 19 = 331.71
Solution B)
Compute the initial trend estimate (Tt) for Period 5 as follows: (Period 4 data – Period 1 data) / 3.
Solution : Forcast for period 16 is 291.08.
(Period 4 data – Period 1 data) / 3 = (222-200)/3 =7.333
Then compute the initial trend-adjusted forecast (TAFt) for Period 5 as follows:
Solution: Period 4 data + initial trend estimate for period 5 = 222 + 7.333 = 229.33
Forcast for period 16 = 312.92
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Y18 |
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Y19 |
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