1. The following data are a local newspaper's readership ?gures, in thousands:
Year: 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Readers: 53 65 74 85 92 105 120 128 144 158 179 195
Do a trend regression on the data, and forecast the total number of readers for 2008 and for 2009.
2. The following data are the share of foreign shareholding as a percentage of total market capitalization in Korea for the past 12 years: 5, 10, 10, 12, 13, 14, 18, 21, 30, 37, 37, 40.2 Develop a forecasting model for these data and forecast foreign share- holding percentage for Korea in the following year.
3. Would trend analysis, by itself, be a useful forecasting tool for monthly sales of swimming suits? Explain.
4. A ?rm's pro?ts are known to vary with a business cycle of several years. Would trend analysis, by itself, be a good forecasting tool for the ?rm's pro?ts? Why?