Question
Year Bonus ($000) 2000 104.9 2001 77.2 2002 62.8 2003 99.8 2004 112.6 2005 146.6 2006 198.4 2007 171.2 2008 96.8 2009 145.5 2010 138.8
Year Bonus ($000) 2000 104.9 2001 77.2 2002 62.8 2003 99.8 2004 112.6 2005 146.6 2006 198.4 2007 171.2 2008 96.8 2009 145.5 2010 138.8 2011 108.6 2012 137.2 2013 171.6 2014 158.4 2015 143.4 2016 143.1
There has been much publicity about bonuses paid to financial sector workers. Just how large are these bonuses? The accompanying data table contains the bonuses paid (in thousands of dollars) from 2000 to 2016. Assign the coded value 0 to the first year, the coded value 1 to the second year, and so on. Complete parts (a) through (c) below.
b. Compute a linear trend forecasting equation and plot the results. Note that Xi represents the ith coded year and Yi represents the ith predicted value of the bonus in thousands of dollars.
c. Compute a quadratic trend forecasting equation and plot the results. Note that Xi represents the ith coded year and Yi represents the ith predicted value of the bonus in thousands of dollars.
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