The linear trend forecasting equation for an annual time series containing 22 values (from 2001 to 2022) on total revenues (in $millions) is

Question

Yi = 4.0 + 1.5 Xi

What is the projected trend forecast for the year 2023? (The coded year for the first year is 0):

Answer 1

To find the projected trend forecast for the year 2023, we need to substitute the value of Xi for the year 2023 into the given equation.

The coded year for the first year is 0, so we need to code the year 2023 as well.

Coding for 2023 = 2023 - 2001 = 22

Now, substituting this value into the equation:

Yi = 4.0 + 1.5 * 22
= 4.0 + 33
= 37.0

Therefore, the projected trend forecast for the year 2023 is $37 million.