(2 points) take a look at number 5. Using 95% confidence level, estimate the interval of predicted Free Cash Flow at the 16^th year and interpret the result.

If you want to manually calculate the prediction interval, be sure to use the following formula:

Prediction interval = point estimate predictive errors

Predictive errors = t value x residual standard errors x

If you want to make your life easier, be sure to use the Excel function:

Prediction interval = point estimate predictive errors

FORECAST.LINEAR() for point estimate

FORECAST.ETS.CONFINT() for predictive errors

Default is 95% confidence level

The following table is the result from regression analysis of the relationship between time passage and cash flow from operating activities. As x variable is time, the analysis is also referred to as time-series analysis. SUMMARY OUTPUT 1+n1+(XiX)2(XX)2