Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Boulanger Savings and Loan is proud of its long tradition in Winter Park, Florida. Begun by Michelle Boulanger 22 years after World War II, the
Boulanger Savings and Loan is proud of its long tradition in Winter Park, Florida. Begun by Michelle Boulanger 22 years after World War II, the S&L has bucked the trend of financial and liquidity problems that has repeatedly plagued the industry. Deposits have increased slowly but surely over the years, despite recessions in 1983, 1988, 1991, 2001, and 2010. Ms. Boulanger believes it is necessary to have a long-range strategic plan for her firm, including a 1-year forecast and preferably even a 5-year forecast of deposits. She examines the past deposit data and also peruses Florida's gross state product (GSP), over the same 44 years. (GSP is analogous to gross national product (GNP] but on the state level.) The resulting data are in the following table: GSP Year Deposits GSP Year Deposits GSP Year Deposits GSP Year Deposits 1 0.25 0.39 12 0.33 0.90 23 6.20 2.40 34 36.00 2 0.24 0.41 13 0.51 1.20 24 4.20 2.90 35 31.20 3 0.25 0.49 14 0.95 1.19 25 4.40 3.00 36 31.60 4 0.26 0.70 15 1.70 1.20 26 6.00 3.50 37 38.60 5 0.24 0.89 16 2.30 1.59 27 7.60 3.90 38 48.00 6 0.29 1.01 17 2.70 1.50 28 10.20 4.10 39 49.20 7 0.31 1.40 18 2.90 1.61 29 15.10 4.10 40 55.60 8 0.31 1.70 19 2.80 1.70 30 18.00 4.00 41 69.10 9 0.25 1.31 20 3.80 1.89 31 23.90 4.00 42 69.90 10 0.25 1.20 21 4.90 1.90 32 25.60 3.80 43 80.10 11 0.26 1.11 22 5.30 2.31 33 30.30 3.70 44 95.00 in $ millions. In $ billions. This exercise contains only part a. 3.60 4.10 4.20 4.10 4.60 4.70 4.60 4.50 4.50 4.70 5.00 a) Using exponential smoothing with a = 0.4 and an initial forecast of 0.25, the forecast for deposits for year 44 is $ 69.19 million (round your response to two decimal places). Using linear regression trend analysis, the forecast for deposits for year 44 is million (round your response to two decimal places)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started