Using Linear Trend to ForecastExample

Example 5.5 Use the linear trend model to forecast Eastman Kodak Co.’s net sales for 1996

NOTE:

Coded years: 1970 = 0, 1971 = 1, … , 1995 = 25 1996 = 26

USING THE LINEAR TREND MODEL:

Sales = 2.17 + 0.674 CodeYear

= 2.17 + (0.674)(26)

= 19.7 BILLION DOLLARS

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