Question

Obtain the linear trend equation for the following data on new checking accounts at Fair Savings Bank and use it to predict expected new checking accounts for periods 16 through 19. (Round your intermediate calculations and final answers to 2 decimal places.)
Period New Accounts Period New Accounts Period New Accounts
1 200 6 239 11 281
2 215 7 241 12 275
3 211 8 250 13 282
4 224 9 254 14 288
5 235 10 267 15 308
Y = + t
Y16 =
Y17 =
Y18 =
Y19 =
Use trend-adjusted smoothing with %u03B1 = .2 and %u03B2 = .1 to smooth the new account data in part a. What is the forecast for period 16? (Use the "Trend" values to 3 decimal places and other values to 2 decimal places for intermediate calculations. Round your final answer to 2 decimal places.)

Answer 1

Answer:

Y16 = 7(16) + 195.33 = 307.33

Y17 = 7(17) + 195.33 = 314.33

Y18 = 7(18) + 195.33 = 321.33

Y19 = 7(19) + 195.33 = 328.33

Explanation:

Period (x)

New accounts (Y)

The regression equation:

Y = mx + t

Y is the dependent variable

X is the independent variable

t point where trend line cuts through the x-axis

M is the gradient or slope

Using the regression calculator, the trend line for the data is :

Y = 7X + 195.33

Using the regression equation obtained :

Y16 = 7(16) + 195.33 = 307.33

Y17 = 7(17) + 195.33 = 314.33

Y18 = 7(18) + 195.33 = 321.33

Y19 = 7(19) + 195.33 = 328.33