Question

The Seneca Children's Fund is a local charity that runs summer camps for disadvantaged children. The fund's board of directors has been working very hard in recent years to decr4ease the amount of overhead expenses, a major factor in how charities are rated by independent agencies. The following data show the percentages of the money the fund has raised that was spent on administrative and fund-raising expenses for 2006-2012.

Year      Expense (%)

2006            13.7

2007            13.9

2008            14.8

2009            14.6

2010            14.9

2011            15.1

2012            15.6

a. Construct a time series plot. What kind of relationship exists in the data?

b. Develop a linear trend equation for these data.

c. Forecast the percentage of administrative expenses for 2013.

d. Using a smoothing constant of .2 forecast a value for 2013.

Answer 1

a)

b)