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Economics Assignment- Discussion
• Consider the sales pattern shown in the data set below:
Sales
Year
Time Index
121
2004
0
130
2005
1
145
2006
2
160
2007
3
155
2008
4
179
2009
5
215
2010
6
208
2011
7
235
2012
8
262
2013
9
?
2014
10
2015
11
Using the regression feature of Excel, compute the equation of a trend line to forecast sales in 2014 and 2015. Note, you can use 'Year' as the explanatory variable or the 'Time Index' as the explanatory variable, but not both in the same equation. In your opinion, is this a good equation for forecasting future sales? Why or why not?
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