Linear Time-Series Model Solution
You’re a marketing analyst for Hasbro Toys.
Using coded years, you find Yi = .6 + .7Xi.
Year Coded Year Sales (Units) 1993 0 1 1994 1 1 1995 2 2 1996 3 2 1997 4 4 1998 5 ?
1998 forecast sales: Yi = .6 + .7·(5) = 4.1
The equation would be different if ‘Year’ used.