Assignment:
Exponential Model on Growth of Internet Networks
1989- 1996
Internet Network: A global network connecting millions of computers. More than 100 countries are linked into exchanges of data, news and opinions. The Internet is revolutionizing and enhancing the way we as humans communicate, both locally and around the globe. Simply put, the Internet is a network of linked computers allowing participants to share information on those computers.
Reporting Period Covered: This report summarizes and describes data reported to Zakon Company from 1989-1996
The following data is related to growth of Internet Networks during 1989-1996
|
|
Time
|
Networks
|
|
1
|
Jul-89
|
650
|
|
2
|
Oct-89
|
837
|
|
3
|
Oct-90
|
2063
|
|
4
|
Jan-91
|
2338
|
|
5
|
Jul-91
|
3086
|
|
6
|
Oct-91
|
3556
|
|
7
|
Jan-92
|
4526
|
|
8
|
Apr-92
|
5291
|
|
9
|
Jul-92
|
6569
|
|
10
|
Oct-92
|
7505
|
|
11
|
Jan-93
|
8258
|
|
12
|
Apr-93
|
9722
|
|
13
|
Jul-93
|
13767
|
|
14
|
Oct-93
|
16533
|
|
15
|
Jan-94
|
20539
|
|
16
|
Jul-94
|
25210
|
|
17
|
Oct-94
|
37022
|
|
18
|
Jan-95
|
39410
|
|
19
|
Jul-95
|
61538
|
|
20
|
Jan-96
|
93671
|
|
21
|
Jul-96
|
134365
|
The exponential regression of the data can be established by a scatter gram
Computer Networks is getting a wide range of applications in day to day life. Almost all business activities is somehow related to computer network. The present study tries to estimate the rate of change in the number of networks based on some secondary data.
Equation: A regression line of the form Y = abx can be suggested to model this data. Here Y represents the number of the internet networks in the month X since 1989.
Thus the exponential model can be written as equation:
Y = 448.380 (1.063)x
Prediction : The model Y = 448.380 ( 1.063)x can be used to predict the future value. The above model can be used to predict the future number of internet networks for example, in the year 2008 (x = 19 ), the number of internet network will be estimated at
502609327.40
Networks = 448.380 ( 1.063 )(19)(12)
= 448.380 ( 1120945.02 )
= 502609327.40
Even though the model explained the variability in networks is 97.86 %., the model assumes that the internet networks will increase exponentially. This model may not be suitable for long term prediction as the growth pattern may drastically change due to advancement in network technology
The Base:
In the model Y = abx the parameter b or base b is known as the compound growth rate.
The base b = 1.063 which means that the number of internet networks growth is increasing by 6.3 % per year.
Provide complete and step by step solution for the question and show calculations and use formulas.