Question: Your company’s sales have been growing steadily over the last 17 quarters, as shown in the following table:

You wish to predict the next four quarters’ sales.

1. Using regression techniques, find the linear time trend that best fits the sales data. How well does this equation fit the past data?

   	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%
   Intercept	95.01618	1.357218	70.00806	2.76E-20	92.12333	97.90902
   Quarter	4.67598	0.132451	35.3035	7.47E-16	4.393668	4.958293

   
   The linear regression model is
   \[Sales=95.016+4.676\,t\]
   This model is really good, as shown by the high R-Squared coefficient:
   \[{{R}^{2}}=0.9881\]
2. Now estimate the constant-growth equation Q = br ^t . Find the coefficients for b and r. Does this equation perform better than the linear form in part a? Explain.
3. Predict sales for the next four quarters using both equations.

Price: $2.99

Solution: The downloadable solution consists of 3 pages
Deliverable: Word Document