Annual retail store revenue for a technology company from 2007 to 2017 are shown below. Year Period O 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 35 30- 1 25 20 15- 10+ 5- 2 3 5 6 7 8 9 10 (a) Construct a time series plot. 11 Retail Store Revenue ($ billions) 3.915 6.110 6.777 9.280 14.327 19.028 20.428 21.662 28.309 26.998 30.703 0 1 2 3 4 5 6 7 8 9 10 11 12 Period What type of pattern exists in the data? O The time series plot shows a cyclical pattern. O The time series plot shows a horizontal pattern. O The time series plot shows a downward trend. The time series plot shows an upward trend. 35 25 20 15- 10- 5 0- 0 1 2 3 4 5 6 7 8 9 10 11 12 Period 35 30 25- 20- 15- 10- 5- 0 1 2 3 4 5 6 7 8 9 10 11 12 Period O 35 30 20 15 10- AM 5- 0 0 1 2 3 4 5 6 7 8 9 10 11 12 Period

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(b) Using statistical software, develop a linear trend equation for this time series to forecast revenue (in $ billions). (Round your numerical values to four decimal places.)
T₂ = 2.8450+ - 0.0124
X
(c) Use the trend equation developed in part (b) to forecast retail store revenue (in $ billions) for 2018. (Round your answer to one decimal place.)
$34.1
billion
Transcribed Image Text:(b) Using statistical software, develop a linear trend equation for this time series to forecast revenue (in $ billions). (Round your numerical values to four decimal places.) T₂ = 2.8450+ - 0.0124 X (c) Use the trend equation developed in part (b) to forecast retail store revenue (in $ billions) for 2018. (Round your answer to one decimal place.) $34.1 billion
Annual retail store revenue for a technology company from 2007 to 2017 are shown below.
Year Period
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
35
30
25
20
15
10
1
5+
0
2
3
4
5
6
7
8
9
10
11
(a) Construct a time series plot.
Retail Store Revenue
($ billions)
3.915
+
01 2 3 4 5
6.110
6.777
9.280
14.327
19.028
20.428
21.662
28.309
26.998
30.703
AM
6
Period
7 8 9 10 11 12
What type of pattern exists in the data?
O The time series plot shows a cyclical pattern.
O The time series plot shows a horizontal pattern.
O The time series plot shows a downward trend.
The time series plot shows an upward trend.
35
30
25
20
15
10
5-
0-
0
1
2
3 4 5
6
Period
7 8 9 10 11 12
35
30
25
20
15
10
5
0-
0
1 23 4
5 6 7 8 9 10 11 12
Period
O
35
30
25
20
15
10
5
0
0
VM
+
1 2 3 4 5 6 7 8 9 10 11 12
Period
Ⓡ
Transcribed Image Text:Annual retail store revenue for a technology company from 2007 to 2017 are shown below. Year Period 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 35 30 25 20 15 10 1 5+ 0 2 3 4 5 6 7 8 9 10 11 (a) Construct a time series plot. Retail Store Revenue ($ billions) 3.915 + 01 2 3 4 5 6.110 6.777 9.280 14.327 19.028 20.428 21.662 28.309 26.998 30.703 AM 6 Period 7 8 9 10 11 12 What type of pattern exists in the data? O The time series plot shows a cyclical pattern. O The time series plot shows a horizontal pattern. O The time series plot shows a downward trend. The time series plot shows an upward trend. 35 30 25 20 15 10 5- 0- 0 1 2 3 4 5 6 Period 7 8 9 10 11 12 35 30 25 20 15 10 5 0- 0 1 23 4 5 6 7 8 9 10 11 12 Period O 35 30 25 20 15 10 5 0 0 VM + 1 2 3 4 5 6 7 8 9 10 11 12 Period Ⓡ
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