Your company's sales have been growing steadily over the last 17 quarters, as shown in the following

Question:

Your company's sales have been growing steadily over the last 17 quarters, as shown in the following table.

You wish to predict the next four quarters' sales. (You are aware that your product's sales have no seasonal component.)
a. Using regression techniques, find the linear time trend that best fits the sales data. How well does this equation fit the past data?
b. Now estimate the constant-growth equation, Q = brt. Find the coefficients for b and r. Does this equation perform better than the linear form in part (a)? Explain.
c. Predict sales for the next four quarters using both equations?