In forecasting a monthly time series over a five-year period from January 2005 to December 2009, the exponential trend forecasting equation for January is log Yi = 2.0 + 0.01 Xi + 0.10 (January)
Take the anti-log of the appropriate coefficient from this equation and interpret the:
(a) Y intercept, b0
(b) Monthly compound growth rate
(c) January multiplier
First, we take the antilog of the equation: Yi=exp(2.0 + 0.01 Xi + 0.10 (January) )=exp(2.0)*exp(0.01Xi)*exp(0.10(January)).
(a) Y intercept or bo: Here ...
The expert examines forecasting a time series with the anti-log of the appropriate coefficient from the equation and interprets the results.