Answer Happy

A certain company produces and sells frozen pizzas to public schools throughout the eastern United States. Using a very aggressive marketing strategy, they have been able to Increase their annual revenue by approximately $10 million over the past 10 years. But increased competition has slowed their growth rate in the past few years. The annual revenue, in millions of dollars, for the previous 10 years is shown. Year Revenue 1 8.43 2 10.84 3 12.88 4 14.21 5 16.31 6 17.11 7 18.37 18.45 9 18.40 10 18.53 (a) Construct a time series plot. 201 18- 16- 14- 12 10- Revenue ($ millions), 8594NONC 8 20- 18- 16- 14- 12- 10- 201 2 3 4 5 6 Year 7 8 9 10 11 00 Revenue ($ millions) 20 18 16- 2 3 4 5 6 7 8 9 10 11 Year G
(a) Construct a time series plot. 20- 18 16- 14 12 10- 8 6 Revenue ($ millions) 0 4 2 Revenue (5 millions) 0 0123 0202208 18- 16- 14- 4 5 6 7 8 9 10 11 Year 0 1 2 3 4 6 7 8 9 10 11 5 Year Comment on the appropriateness of a linear trend. O The time series plot shows that a linear trend is most appropriate. The time series plot shows that neither a linear nor a curvilinear trend is appropriate. The time series plot shows that a curvilinear trend may be more appropriate. 10 20 © Revenue ($ millions) O Revenue ($ millions) my mau Tophat 0 1 2 3 4 5 6 7 8 9 10 11 Year 0 1 2 3 4 5 6 7 8 9 10 11 Year 201 SHLANGS6 + NO 18- 16 14- 20 18 KH208642 SIMnet
(b) Using statistical software, develop a quadratic trend equation that can be used to forecast revenue (in millions of dollars). (Round your numerical values to three decimal places.) T.F (c) Using the trend equation developed in part (b), forecast revenue (in millions of dollars) in year 11. (Round your answer to two decimal places.) million