The file McDonalds contains the gross revenues (in billions of current dollars) of McDonald's Corporation from 1975
Question:
The file McDonalds contains the gross revenues (in billions of current dollars) of McDonald's Corporation from 1975 through 2018:
a. Plot the data.
b. Compute the linear trend forecasting equation.
c. Compute the quadratic trend forecasting equation.
d. Compute the exponential trend forecasting equation.
e. Determine the best-fitting autoregressive model, using a = 0.05.
f. Perform a residual analysis for each of the models in (b) through (e).
g. Compute the standard error of the estimate (Syx) and the MAD for each corresponding model in (f).
h. On the basis of your results in (f) and (g), along with a consideration of the principle of parsimony, which model would you select for purposes of forecasting? Discuss.
i. Using the selected model in (h), forecast gross revenues for 2019.
Step by Step Answer:
Statistics For Managers Using Microsoft Excel
ISBN: 9780135969854
9th Edition
Authors: David M. Levine, David F. Stephan, Kathryn A. Szabat