Question 194890: The following time series data represent the quarterly amounts spent on advertising (in millions of dollars) by a large toy company (read across):
Quarter 1 Quarter 2 Quarter 3 Quarter 4
14.8 14.8 12.6 13.0
15.8 15.1 13.3 14.9
13.3 16.3 16.6 15.7
16.6 14.3 18.3 14.4
17.9 16.2 16.6 16.9
17.7 16.5 19.4
This series of data begins in Quarter 1 of 1996 (i.e., time t=1 corresponds to the first quarter of 1996). Using regression analysis, a linear trend line of the form Tt=13.44 + 0.19t 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 2009.
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! The following time series data represent the quarterly amounts spent on advertising (in millions of dollars) by a large toy company (read across):
Quarter 1 Quarter 2 Quarter 3 Quarter 4
14.8 14.8 12.6 13.0
15.8 15.1 13.3 14.9
13.3 16.3 16.6 15.7
16.6 14.3 18.3 14.4
17.9 16.2 16.6 16.9
17.7 16.5 19.4
This series of data begins in Quarter 1 of 1996 (i.e., time t=1 corresponds to the first quarter of 1996). Using regression analysis, a linear trend line of the form Tt=13.44 + 0.19t 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 2009.
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The "t" values for 1997 would be 5,6,7,9
Because 1997 is 1 year after 1996
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2009 is 13 years after 1996 so the "t"
values would be 1+13*4 = 53, 54, 55,56
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Then:
T(53) = 13.44 + 0.19*53 = 23.51
T(54) = 23.51 + 0.19 = 23.7
T(55) = 23.7 + 0.19 = 23.89
t(56) = 23.89 + 0.19 = 24.08
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Add those up to get the money spent for the year.
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Cheers,
Stan H.
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