Develop a trend equation for the net sales ($ million) for Home Depot. Consider both a linear trend and a nonlinear trend. Which one would you select and why? Given the trend equation you selected, forecast the net sales for 2016 and 2017.

Transcribed Image Text:

Assoclates Net Sales Mean Amount ($ milllon) per Transaction Year Time (000) CPI 50.6 1993 39.13 9,239 144.500 41.29 1994 2 67.3 12,477 148.200 152.400 1995 3 80.8 15,470 41.78 1996 98.1 19,535 42.09 156.900 1997 124.4 24,156 43.63 160.500 156.7 1998 30,219 45.05 163.000 47.87 1999 201.4 38,454 166.000 45,738 2000 8. 227.3 48.65 172.200 2001 53,553 48.64 256.3 177.100 280.9 49.43 2002 10 58,247 179.900 2003 11 298.8 64,816 51.15 184.000 2004 12 323.1 73,094 54.89 188.900 2005 13 344.8 81,511 57.98 195.300 2006 14 364.4 79,022 58.90 201.600 331.0 2007 15 77,349 57.48 207.342 322.0 2008 16 71,288 55.61 215.303 2009 17 317.0 66,176 51.76 214.537 2010 18 321.0 67,997 51.93 218.056 2011 224.939 19 331.0 70,395 53.28 54.89 2012 20 340.0 74,754 229.594 2013 21 365.0 78,812 56.76 232.957 83,176 2014 22 371.0 57.87 236.736 2015 23 385.0 88,519 58.77 237.017