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Exhibit 18.3. The following table shows the annual revenues (in millions of dollars) of a pharmaceutical company over the period 1990-2011. Excel scatterplot shown above
Exhibit 18.3. The following table shows the annual revenues (in millions of dollars) of a pharmaceutical company over the period 1990-2011. Excel scatterplot shown above indicates that the annual revenues have an increasing trend. Therefore, linear, exponential, quadratic and cubic models were used to fit the trend, and the following relevant information became available after applying linear regression. Refer to Exhibit 18.3. Using the linear trend equation, one can say that the predicted revenue increases by 642,792,000 a year. $604,930,000 a year. $60,493,000 a year. $6,049,300 a year. Refer to Exhibit 18.2. When the exponential smoothing method with = 0.1 is applied, what is the mean square error (MSE)? 20.796 31.2336 12.6736 10.41
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