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The data in the following table stored in represent the gross revenues in billions of current dollars) of McDonald’s Corporation from 1975 through 2009 Year Revenues Year Revenues Year Revenues

 The data in the following table (stored in ) represent the gross revenues (in billions of current dollars) of McDonald’s Corporation from 1975 through 2009
Year Revenues Year Revenues Year Revenues 1975 1.0 1987 4.9 1999 13.3 1976 1.2 1988 5.6 2000 14.2 1977 1.4 1989 6.1 2001 14.8 1978 1.7 1990 6.8 2002 15.2 1979 1.9 1991 6.7 2003 16.8 1980 2.2 1992 7.1 2004 18.6 1981 2.5 1993 7.4 2005 19.8 1982 2.8 1994 8.3 2006 20.9 1983 3.1 1995 9.8 2007 22.8 1984 3.4 1996 10.7 2008 23.5 1985 3.8 1997 11.4 2009 22.7 1986 4.2 1998 12.4
a. Plot the data. b. Compute the linear trend forecasting equation. c. Compute the quadratic trend forecasting equation. d. Compute the exponential trend forecasting equation. e. Determine the best-fitting autoregressive model, using f. Perform a residual analysis for each of the models in (b) through (e). g. Compute the standard error of the estimate and the MAD for each corresponding model in (f). h. On the basis of your results in (f) and (g), along with a consideration of the principle of parsimony, which model would you select for purposes of forecasting? Discuss. i. Using the selected model in (h), forecast gross revenues for 2010.

Jun 20 2020 View more View Less

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