SOLUTION: The following time series data represent the yearly amounts spent on advertising (in millions of dollars) by a large toy company: 32.3, 28.5, 31.2, 31.1, 32.9, 28.6, 37.9 T

Algebra ->  Probability-and-statistics -> SOLUTION: The following time series data represent the yearly amounts spent on advertising (in millions of dollars) by a large toy company: 32.3, 28.5, 31.2, 31.1, 32.9, 28.6, 37.9 T      Log On


   

Question 140780: The following time series data represent the yearly amounts spent on advertising (in millions of dollars) by a large toy company:
32.3, 28.5, 31.2, 31.1, 32.9, 28.6, 37.9
This series of data begins in year 1996 (i.e., time period t= 1 corresponds to 1996 ). Using regression analysis, a linear trend line of the form Tt = 29.08 +0.68t was fit to the data. Using this information, generate a forecast for the total yearly amount of money that will be spent on advertising in 2008.
Answer by stanbon(75887) About Me  (Show Source):
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The following time series data represent the yearly amounts spent on advertising (in millions of dollars) by a large toy company:
32.3, 28.5, 31.2, 31.1, 32.9, 28.6, 37.9
This series of data begins in year 1996 (i.e., time period t= 1 corresponds to 1996 ). Using regression analysis, a linear trend line of the form Tt = 29.08 +0.68t was fit to the data. Using this information, generate a forecast for the total yearly amount of money that will be spent on advertising in 2008.
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Using that regression equation you would get:
T(12) = 29.08 + 0.68*12 = 37.24
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Cheers,
Stan H.