Question: Loans and leases data for the years 2000 through 2010 for the Bank of the Ozarks are shown below: a. Produce a time-series plot of

Loans and leases data for the years 2000 through 2010 for the Bank of the Ozarks are shown below:

a. Produce a time-series plot of these data.
b. Fit a linear trend line to these data.
c. Conduct a hypothesis test of the significance of the linear trend model developed in part b. Use a level of significance of 0.05.
d. For the years 2000 through 2010, what is the predicted value each year for loans and leases using the linear trend model estimated in part b.
e. Calculate the MAD for the linear trend forecasts developed in part d.
f. Use the linear trend model to forecast loans and leases for the Bank of the Ozarks for 2011 and 2012.

Year Loans & Leases (S millions) 2000 200 2002 2003 2004 2005 2006 2007 2008 2009 2010 511 616 909 1,135 1,37 1677 1,871 2.021 1,904 2.354

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a b The estimated linear trend line is y 24016 18856time period c One hypothesis test would be to determine if the coefficient on the time period is s... View full answer

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