The data in the following table, stored in McDonalds represent the gross revenues (in billions of current

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The data in the following table, stored in McDonalds represent the gross revenues (in billions of current dollars) of McDonald's Corporation from 1975 through 2011:
The data in the following table, stored in McDonalds represent

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 a = 0.05.
f. Perform a residual analysis for each of the models in (b) through (e).
g. Compute the standard error of the estimate (SYX) 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 2012.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Statistics For Managers Using Microsoft Excel

ISBN: 772

7th Edition

Authors: David M. Levine, David F. Stephan, Kathryn A. Szabat

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