There has been much publicity about bonuses paid to workers on Wall Street. Just how large are these bonuses? The file Bonuses contains the bonuses paid (in $000) from 2000 to 2016.

Source: Data extracted from J. Spector, “Wall Street bonuses rise 1% to average $138,210,” USA Today, March 15, 2017.

a. Plot the data.

b. Compute a linear trend forecasting equation and plot the results.

c. Compute a quadratic trend forecasting equation and plot the results.

d. Compute an exponential trend forecasting equation and plot the results.

e. Using the forecasting equations in (b) through (d), what are your annual forecasts of the bonuses for 2017 and 2018?

f. How can you explain the differences in the three forecasts in (e)? What forecast do you think you should use? Why?