1. The following time series data represent the yearly amounts spent on advertising (in millions of dollars) by a large toy company:
29.5, 28.6, 34.2, 34.6, 39.3, 35.6, 43.1, 40.4, 50.1, 50.1
This series of data begins in year (i.e., time period corresponds to ). Using regression analysis, a linear trend line of the form was fit to the data. Using this information, generate a forecast for the total yearly amount of money that will be spent on advertising.
The solution provides step by step method for the calculation of forecast of time series . Formula for the calculation and Interpretations of the results are also included.