# Question

From 2001 through 2007, average monthly cable TV bills were as shown here.

Year Average Bill

2001...... $32.87

2002........ 34.71

2003........ 36.59

2004........ 38.14

2005........ 39.63

2006........ 41.17

2007........ 42.72

a. Fit a linear trend equation to the time series. Using this equation, determine the trend estimate for 2015.

b. Fit a quadratic equation to the time series, then use the equation to determine the trend estimate for 2015.

c. Which of the preceding equations is the better fi t to the time series if the MAD criterion is used? If the MSE criterion is used?

Year Average Bill

2001...... $32.87

2002........ 34.71

2003........ 36.59

2004........ 38.14

2005........ 39.63

2006........ 41.17

2007........ 42.72

a. Fit a linear trend equation to the time series. Using this equation, determine the trend estimate for 2015.

b. Fit a quadratic equation to the time series, then use the equation to determine the trend estimate for 2015.

c. Which of the preceding equations is the better fi t to the time series if the MAD criterion is used? If the MSE criterion is used?

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