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problems that has repeatedly plagued the industry. Deposits have increased slowly but surely over the years, despite necessary to have a long-range strategic plan
problems that has repeatedly plagued the industry. Deposits have increased slowly but surely over the years, despite 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: Year Deposits GSPb Year Deposits GSP Year Deposits GSP Year Deposits GSP 1 0.26 0.41 12 0.34 0.89 23 6.20 2.50 34 36.10 3.70 2 0.24 0.41 13 0.49 1.19 24 4.10 2.70 35 31.00 4.00 3 0.23 0.49 14 0.96 1.21 25 4.40 2.90 36 31.60 4.00 4 0.25 0.70 15 1.70 1.20 26 6.00 3.40 37 38.50 4.10 5 0.25 0.90 16 2.40 1.60 27 7.70 3.70 38 48.00. 4.40 6 0.30 1.01 17 2.80 1.51 28 10.00 4.20 39 49.20 4.60 7 0.31 1.41 18 2.80 1.61 29 15.20 4.10 40 55.80 4.60 0.31 1.70 19 2.70 1.70 30 18.10 3.90 41 69.10 4.70 9 0.25 1.31 20 3.90 1.91 31 24.20 4.00 42 71.90 4.50 10 0.25 1.19 21 5.00 11 0.26 1.09 22 5.30 1.90 32 2.31 33 25.70 3.70 43 79.10 4.70 30.40 3.70 44 93.00 5.10 "In $ millions. In $ billions. Using linear regression trend analysis, the forecast for deposits for year 44 is $83.42 million (round your response to two decimal places). Using least squares simple regression on GSP, the forecast for deposits for year 44 is $83.42 million (round your response to two decimal places). The trend analysis method would be the best method for Boulanger S&L to develop a forecast for the next 5 years (i.e., to forecast deposits for years 45 through 49).
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