Fifteen mid-western and mountain states have united in an effort to promote and forecast tourism. One aspect
Question:
Fifteen mid-western and mountain states have united in an effort to promote and forecast tourism. One aspect of their work has been related to the dollar amount spent per year on domestic travel (DTE) in each state. They have the following estimates for disposable personal income per capita (DPI) and DTE:
State | DPI | DTE ($Millions) |
Minnesota | $17,907 | $4,933 |
Iowa | 15,782 | 1,766 |
Missouri | 17,158 | 4,692 |
North Dakota | 15,688 | 628 |
South Dakota | 15,981 | 551 |
Nebraska | 17,416 | 1,250 |
Kansas | 17,635 | 1,729 |
Montana | 15,128 | 725 |
Idaho | 15,974 | 934 |
Wyoming | 17,504 | 778 |
Colorado | 18,628 | 4,628 |
New Mexico | 14,587 | 1,724 |
Arizona | 15,921 | 3,836 |
Utah | 14,066 | 1,757 |
Nevada | 19,781 | 6,455 |
a. From these data, estimate a bivariate linear regression equation for domestic travel expenditures (DTE) as a function of disposable income per capita (DPI):
b. Illinois, a bordering state, has asked that this model be used to forecast DTE for Illinois under the assumption that DPI will be $19,648.
c. Given that actual DTE turned out to be $7,754 (million), calculate the percentage error in your forecast.
Step by Step Answer:
Forecasting And Predictive Analytics With Forecast X
ISBN: 978-1259903915
7th edition
Authors: J. Holton Wilson, Barry Keating