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    Linear trend equation: Predicted value & Residual value

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    The linear trend equation for the follwing date is y= 1.4286+2.5(t)

    Month Value of Fund
    1 4
    2 6
    3 9
    4 12
    5 14
    6 16
    7 19

    a. What is the predicted value of the fund in the period t=1?
    b. What is the predicted value of the fund in the period 3 and period 7?
    c. Find the residual values (error) for period 3 and period 7?

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    https://brainmass.com/statistics/descriptive-statistics/linear-trend-equation-predicted-value-residual-value-334994

    Solution Preview

    Please see the attachment.

    Predicted value and residual values
    The linear trend equation for the following date is y = 1.4286+2.5(t)

    Month Value of Fund
    1 4
    2 6
    3 9
    4 12
    5 ...

    Solution Summary

    The solution provides step by step method for the calculation of predicted values and residual values. Formula for the calculation is also included.

    $2.19

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