The linear trend forecasting equation for an annual time series containing 22 values (from 2001 to 2022) on total revenues (in $millions) is
Yi = 4.0 + 1.5 Xi
What is the projected trend forecast for the year 2023? (The coded year for the first year is 0):
To find the projected trend forecast for the year 2023, we need to substitute the value of Xi for the year 2023 into the given equation.
The coded year for the first year is 0, so we need to code the year 2023 as well.
Coding for 2023 = 2023 - 2001 = 22
Now, substituting this value into the equation:
Yi = 4.0 + 1.5 * 22
= 4.0 + 33
= 37.0
Therefore, the projected trend forecast for the year 2023 is $37 million.
To find the projected trend forecast for the year 2023 using the given linear trend forecasting equation, follow these steps:
Step 1: Determine the value of Xi for the year 2023.
Since the coded year for the first year is 0, and the given time series contains 22 values from 2001 to 2022, the coded year for 2023 would be 22. Therefore, Xi = 22.
Step 2: Substitute the value of Xi into the equation and solve for Yi.
Yi = 4.0 + 1.5 * Xi
Yi = 4.0 + 1.5 * 22
Yi = 4.0 + 33
Yi = 37.0
Therefore, the projected trend forecast for the year 2023 is $37 million.
To find the projected trend forecast for the year 2023 using the given linear trend forecasting equation, we need to substitute the value of Xi with the coded year for 2023 and then calculate the value of Yi.
Given:
Yi = 4.0 + 1.5 Xi
The coded year for 2023 is 2023 - 2001 = 22 (since the first year is coded as 0)
Substituting the value of Xi = 22 into the equation, we get:
Yi = 4.0 + 1.5 * 22
= 4.0 + 33
= 37.0
Therefore, the projected trend forecast for the year 2023 is $37 million.