show all the work or send the link The following data give the sales in millions

Question

show all the work or send the link

The following data give the sales in millions of dollars for a company for the given years:

Years Sales 2001 3.1 2002 3.6 2003 4.3 2004 4.9 2005 5.2 2006 6.1 2007 6.9 2008 7.2

a) Give the equation of the trend line for this time series. Round to 3 decimal places.

b) Interpret the intercept in the context of this problem. Move decimal appropriately in your answer.

c) Interpret the slope of sales in the context of this problem. Move decimal appropriately in your answer.

d) Forecast sales for the year 2012. Move decimal appropriately in your answer.

e) What % of the increase in sales is explained by the lineaer trend over the time series?

Explanation / Answer

a)

Sales (millions) = -1209.469 + 0.606 (year)

b)

Intercept means that if we assume year to be 0 the sales would be -1209.469

c)

For increase in the year count by 1 there is an increase in the sales by 0.606

d)

Sales (2012) = 9.707 million

e)

98.97 %of the increase in sales is explained by the lineaer trend over the time series

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