SOLUTION: Kindly help me with the following . Mercy, the chief financial analyst of NQL ltd whishes to develop a model to assist NQL in projecting its monthly profits. Mercy conducted a

Question 62409: Kindly help me with the following .

Mercy, the chief financial analyst of NQL ltd whishes to develop a model to assist NQL in projecting its monthly profits. Mercy conducted a study that provided the following data
Month July 2006 August 2006 September 2006 October 2006
Profit ($ M) 104 113 122 132
1. Which model linear or exponential best describes the pattern of NQL’s Monthly profit
2. Find the expected profit for Dec. 2006 using the selected model in (1)

2. Find the expected profit for Dec. 2006 using the selected model in (1)

Answer by stanbon(48535) (Show Source):
You can put this solution on YOUR website!
Month July 2006 August 2006 September 2006 October 2006
Profit ($ M) 104 113 122 132
1. Which model linear or exponential best describes the pattern of NQL’s Monthly profit
Using a TI-83 to model the data the exponential is "slightly" better
than the lineanr (r=0.9998 vs r=0.9996 Pearson product)
The exponential model is y=96.22...*1.08^x
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2. Find the expected profit for Dec. 2006 using the selected model in (1)
The model gives an expected profit of 154.75 for December.
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Cheers,
Stan H.