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In: Finance

Based on the data below, forecast US hotel revenues for 2017, 2018, and 2019. Provide the...

Based on the data below, forecast US hotel revenues for 2017, 2018, and 2019. Provide the model developed for your calculations.

YEAR REVENUE ($USD BILLION)

2001 105.00

2002 111.90

2003 118.80

2004 119.30

2005 135.50

2006 146.20

2007 153.80

2008 154.70

2009 133.30

2010 142.00

2011 153.30

2012 155.50

2013 163.00

2014 176.70

2015 189.50

2016 199.30

Solutions

Expert Solution

X Y
Year Revenue
1 105.00
2 11.90
3 118.80
4 119.30
5 135.50
6 146.20
7 153.80
8 154.70
9 133.30
10 142.00
11 153.30
12 155.50
13 163.00
14 176.70
15 189.50
16 199.30
Regression Model Canbe used to forcast revenues
Regression Equation :
Y=a+bX
Y=Revenue
X=Year
a:Intercept
b:Slope
Regression tool of excel can be used.
Click "Data"
Click "Analysis"
Select "Regression "tool
Input Y range , Revenue
Input X range, Year
Intercept=80.21
Slope=X Variable 1=7.165
Regression Equation:
Y=80.21+7.165X
Y=Revenue
X=Year
Revenue Forecast in 2017=80.21+7.165*17 202.02
Revenue Forecast in 2018=80.21+7.165*18 209.18
Revenue Forecast in 2019=80.21+7.165*19 216.35

jeff jeffy answered 11 months ago
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