The Farr-Kroger Classic is a women's professional golf tournament played each year in Ohio. Listed below are the total purse winnings (the amount of money that is distributed to the top golfers) and the prize for the winner for the 15 years from 1987 through 2001. The operators of this golf tournament believe that there is a relationship between the purse winnings and the prize (see attachment for details).
a) Develop a projection for the amount of the prize for the winner for the year 2004 based only on time as the influencing factor.
b) Now, develop a projection for the amount of the prize for the winner for the year 2004 using the relationship between the prize and the purse winnings.
c) Discuss how the results you found in a) and b) compare with each other.
d) Would you use either of the methods from a) and b) to project the prize for the winner? Explain your answer.
The solution provides detailed instructions for the problem in an Excel file.