Table 1: Sales Tax Revenues (1974-2017)

(note: all dollars converted to 2017 dollars)

1974 $10000

1975 $11000

1976 $12000

1977 $15000

1978 $16000

1979 $17000

1980 $18000

1981 $19000

1982 $20000

1983 $22000

1984 $24000

1985 $12000

1986 $15000

1987 $16000

1988 $17000

1989 $18000

1990 $19000

1991 $20000

1992 $22000

1993 $24000

1994 $12000

1995 $15000

1996 $16000

1997 $17000

1998 $18000

1999 $19000

2000 $20000

2001 $22000

2002 $24000

2003 $12000

2004 $15000

2005 $16000

2006 $17000

2007 $18000

2008 $19000

2009 $20000

2010 $22000

2011 $24000

2012 $5000

2013 $6250

2014 $6250

2015 $6666

2016 $7109

2017 $7111

2018 ???

Figure 1: The Same Sales Tax Revenues (1974-2017) in Chart Form

(note: all dollars converted to 2017 dollars)

Question

Given the data before you, what is the best way to estimate the revene for 2018? Design a revenue estimation for 2018. Note that for this question you should both explain your revenue estimation strategy in written text, explan why that estimation strategy is effective, and also estimate revenue for 2018 in excel. You need to show all of your calculations for that revenue estimation. Your narrative answer to this question should be 1 page long.

Note: there is one correct answer for this question. Pay careful attention to choosing your revenue estimation strategy

Figure 1: The Same Sales Tax Revenues (1974-2017) in Chart Form (note: all dollars converted to 2017 dollars) revenues 30000 25000 20000 15000 10000 5000 1974 1979 1984 1989 1994 1999 2004 2009 2014 Figure 1: The Same Sales Tax Revenues (1974-2017) in Chart Form (note: all dollars converted to 2017 dollars) revenues 30000 25000 20000 15000 10000 5000 1974 1979 1984 1989 1994 1999 2004 2009 2014