Regression analysis was used to estimate the following equation:
S_t = 10(1.20) ^t
The current value of the variable to be forecast is 100. Use the information in the equation to calculate the forecast value of the variable in the next time period.

Question

Quizplus · Accepted Answer

The equation S_t = 10(1.20)^t suggests that the value of the variable grows by a factor of 1.20 each period. If the current value is 100, the next period's value is 100 * 1.20 = 120.

Regression Analysis Was Used to Estimate the Following Equation