The data in the following table, stored in McDonalds represent the gross revenues (in billions of current dollars) of McDonald's Corporation from 1975 through 2011:

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 2012.

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Revenues Revenues Revenues Year (Sbillions) Year (Sbillions) Year (Sbillions) 1975 1.0 1988 5.6 2001 14.8 1976 1.2 1989 6. 2002 15.2 1977 1.4 1990 6.8 2003 16.8 1978 1.7 1991 6.7 2004 18.6 1979 19 1992 7.1 2005 9.8 1980 2.2 993 7.4 2006 20.9 198 2.5 1994 8.3 2007 22.8 1982 2.8 1995 9.82008 23.5 1983 3.1 996 10.7 2009 22.7 1984 3.4 997 114 2010 24.1 1985 3.8 1998 12.4201 27.0 1986 4.2 1999 13.3 1987 4.9 2000 14.2