Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Q 14 The manager of a consulting firm developed a time-series model, with an exponential trend, to forecast its sales revenue in future years, using
Q 14 The manager of a consulting firm developed a time-series model, with an exponential trend, to forecast its sales revenue in future years, using annual data of its sales revenues during the 12-year period from 2010 to 2021. The following is the resulting trend forecasting equation:
log10= 1.014 + 0.028 X
where
is the estimated annual sales revenue.
X is the coded yearly value with X = 0 in the year 2010.
- Determine a forecast for 2022 using the above trend forecasting equation. Show your workings.
- What is the estimated annual compound growth rate in sales revenue? Show your workings.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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