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 10-year period from 2012 to 2021. The following is the resulting trend forecasting equation:

log₁₀= 1.278 + 0.014 X

where

is the estimated annual sales revenue in million dollars.

X is the coded yearly value with X = 0 in the year 2012.

1. Determine a forecast for 2022 using the above trend forecasting equation. Show your workings.
2. What is the estimated annual compound growth rate in sales revenue? Show your workings.