If y_t = 544e^0.07^t, then the forecast for period 7 is approximately: A)989. B)888. C)678. D)589.

Question

Quizplus · Accepted Answer

The given string can be decoded using the following key:
- S1U1: add 1 to the previous number
- S1B1: double the previous number
- S1P0: previous number
- S1P1: previous number + 1

Starting with 5, we can decode the string as follows:
5, 6, 12, 24, 48, 96, 192

Therefore, the forecast for period 7 would be 192.

The only option that is close to 192 is B) 888, which is not a valid choice. Therefore, the best choice is B) 888 as it is the closest option to the forecasted number.

If Yt = 544e0

If Y_t = 544e⁰