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........

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?

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a Linear trend equation With 2001 coded as x 1 the equation is AvgBill 314743 162536x The forecast for 2015 period 15 is 314743 16253615 55855 The Min... View full answer

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