Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the data below to answer; Gondor is facing a pandemic of Black Breath. As opposed to the previous incidences, this time the disease develops

Use the data below to answer;

Gondor is facing a pandemic of Black Breath. As opposed to the previous incidences, this time the disease develops slowly in the body and in that phase the infected people are also contagious. This led to an unprecedented number of infections. The data shows the number of infected people by day. Although the hands of the king are the hands of a healer, the numbers are beyond his capacity. He is worried and he gave you the task of predicting the number of cases for next 7 days.

a.) Draw a graph of the data in Excel(Line of Scatter, your choice). How does it look like, which methods would be suitable to forecast?

b.) A wise man told you that if a variable is exponentially increasing, then the logarithm of that variable would have a linear trend. With that information, you decided to take a scatter of the logarithm of number of cases. (log(X)). You can also do the same by changing the scale of the vertical axis to log scale.(Using format axis in the graph, please Google if you don't know). You are not convinced that fitting a trend line would bring a good forecast. Why would you think so? Why fitting a trend line on logarithm may not generate good forecasts in this case?

c.) Growth rate of a variable is defined as: (X(t+1)-X(t))/X(t) Therefore, if you have a forecast for growth rate g, than you can generate a forecast for the variable using X(t+1)=X(t) x (1+g)

Calculate the daily growth rate, and scatter the growth rate of cases. How does it look like?

d.) Forecast the number of cases for the next 7 days. Choose the method based on your judgement on previous graphs.

Day Gondor Cases of Black Breath
1 85
2 121
3 166
4 228
5 282
6 401
7 525
8 674
9 1,231
10 1,695
11 2,277
12 3,146
13 5,232
14 6,391
15 7,988
16 9,942
17 11,826
18 14,769
19 18,077
20 21,571
21 25,496
22 29,909
23 35,480
24 42,058
25 50,105
26 57,786
27 65,719
28 73,232
29 80,110
30 87,956
31 95,923

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions