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Annual and Linear Trend Lines Predicting Quantity Demanded

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FORECASTING PROJECT

The following table represents the demand for a product for the years 1990 to 2007:
Year Quantity
1990 2753
1991 2634
1992 3169
1993 3301
1994 3754
1995 3834
1996 5117
1997 6448
1998 7908
1999 9213
2000 11502
2001 10791
2002 10022
2003 8342
2004 10453
2005 10784
2006 10718
2007 12460

a. Develop a linear trend line and use it to predict the quantity demanded for 2008, 2009 and 2010.
b. Develop an annual growth trend line and use it to predict the quantity demanded for 2008, 2009 and 2010.

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Solution Summary

The solution shows how to develop a linear trend line and use it to predict the quantity demanded for 2008, 2009 and 2010. An annual growth trend line was also developed to predict the quantity demanded for those years.

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Year Quantity a.       Develop a linear trend line and use it to predict the quantity demanded for 2008, 2009 and 2010.
1990 2753 b.      Develop an annual growth trend line and use it to predict the quantity demanded for 2008, 2009 and ...

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