Question: There has been much publicity about bonuses paid to workers on Wall Street. Just how large are these bonuses? The file Bonuses contains the bonuses

There has been much publicity about bonuses paid to workers on Wall Street. Just how large are these bonuses? The file Bonuses contains the bonuses paid (in $000) from 2000 to 2014. (Data extracted from K. McCoy, "Good job. Here's $173K," USA Today, March 12, 2015, p. B1.)

a. Plot the data.

b. Compute a linear trend forecasting equation and plot the results.

c. Compute a quadratic trend forecasting equation and plot the results.

d. Compute an exponential trend forecasting equation and plot the results.

e. Using the forecasting equations in (b) through (d), what are your annual forecasts of the bonuses for 2015 and 2016?

f. How can you explain the differences in the three forecasts in (e)? What forecast do you think you should use? Why?

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