For the following data find the linear trend (the equation). Then improve the trend by first taking 3 yearly and then 5 yearly moving averages (Specify R2 values for the 3 scenarios). Also predict the revenue for the year 2015 considering the random fluctuations using both additive and multiplicative model. 

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1. For the following data find the linear trend (the equation). Then improve the trend by first taking 3 yearly and then 5 yearly moving averages (Specify R2 values for the 3 scenarios). Also predict the revenue for the year 2015 considering the random fluctuations using both additive and multiplicative model.

2+2+2+(2+2) = 10

 

Year

Revenue   (billions)

 

2001

1.44

 

2002

1.58

 

2003

1.55

 

2004

1.47

 

2005

1.39

 

2006

1.41

 

2007

1.40

 

2008

1.39

 

2009

1.42

 

2010

1.34

 

2011

1.28

 

2012

1.36

 

2013

1.15

 

2014

1.27