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:

Loans and leases data for the years 2000 through 2010 for the

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.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a b Theestimated linear trend line is y 24016 18856time period c Onehypothesis test would be to determine if the coefficient on the time period issign... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Statistics Questions!