Consider the following time series. t 1 2 3 4 5 yt 6 11 9 14 15 (a) Choose the correct time series plot. (i) (ii) (iii) (iv) What type of pattern exists in the data? (b) Use simple linear regression analysis to find the parameters for the line that minimizes MSE for this time series. If required, round your answers to two decimal places. y-intercept, b0 = Slope, b1 = MSE = (c) What is the forecast for t = 6? If required, round your answer to one decimal place.

Consider the following time series. t 1 2 3 4 5 yt 6 11 9 14 15 (a) Choose the correct time series plot. (i) (ii) (iii) (iv) What type of pattern exists in the data? (b) Use simple linear regression analysis to find the parameters for the line that minimizes MSE for this time series. If required, round your answers to two decimal places. y-intercept, b0 = Slope, b1 = MSE = (c) What is the forecast for t = 6? If required, round your answer to one decimal place.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.3: Simple Regression Models

Problem 8P: The management of a technology company is trying to determine the variable that best explains the...

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Concept explainers

Forecasting in Business

Forecasting is the process of predicting the future based on the past and the present data and circumstances. In other words, forecasting is the act of making a detailed analysis of future events based on the decisions made in the past as well as the present. Forecasting plays a very important role in operational management as it helps in planning and decision-making. It is not only important for the success of a business but also contributes to individual growth and success. Many business organizations or companies have failed due to the shortcomings of their forecasting.

Question

Consider the following time series.

t	1	2	3	4	5
y_t	6	11	9	14	15

(a)

Choose the correct time series plot.

(i)		(ii)

(iii)		(iv)

What type of pattern exists in the data?

(b)

Use simple linear regression analysis to find the parameters for the line that minimizes MSE for this time series.

If required, round your answers to two decimal places.

y-intercept, b₀ =

Slope, b₁ =

MSE =

(c)

What is the forecast for t = 6?

If required, round your answer to one decimal place.

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

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