posted by Andrew on .
The table below shows annual demand (in 1,000,000 units per year) for Widgets. Use this information to calculate a constant growth forecasting model. Use your growth model to forecast demand for the years 1995 and 2000.
All help is appreciated, considering the professor never taught us what a 'constant growth model' is.
Here the linear regression equation is Y=0.95+0.24t where Y= the output and t=the time.Hence the output in 1995 is
Output in 2000 is Y=0.95+(0.24).11=3.59
So, a constant growth forcasting model is the same as a linear forecasting model ?