YEAR (t) SALES (yt) tyt t^2

1 74 74 1
2 79 158 4
3 80 240 9
4 90 360 16
5 105 525 25
6 142 852 36
7 122 854 49 3063 2768
28 692 3063 140 140 112
4 98.85714286 b1
gradual increase - trend 98.85714286
y^t= bo +b1t 42.14285714

n=7

USE SIMPLE LINEAR REGRESSION ANALYSIS TO FIND THE PARAMETERS

t yt y^t et
1 74 67.25 6.75
2 79 77.78571429 1.21
3 80 88.32142857 -8.32
4 90 98.85714286 -8.86
5 105 109.3928571 -4.39
6 142 119.9328571 22.07
7 122 130.4642857 -8.46
-0.00428571

b1
t yt tyt t^2 186
1 6 6 1 55
2 11 22 4
3 9 27 9
4 14 56 16
5 15 75 25
15 55 186 55
3 11

b0
4.7
4.7+2.1t

t yt y^t et et et^2
1 6 6.8 -0.8 0.8 0.64
2 11 8.9 2.1 2.1 4.41
3 9 11 -2 2 4
4 14 13.1 0.9 0.9 0.81
5 15 15.2 -0.2 0.2 0.04
17.3 3.55271E-15 6 9.9
0
 SALES (yt)
160

140

120
295
28 100

10.53571429 67.24 80

60
56.71428571
40

20

PARAMETERS 0
0 1 2 3 4 5 6

16

14

12

10

8
165 21 2.1 b1
6
45 10
4

0
0.5 1 1.5 2 2.5 3 3.5 4

Chart Title
16

14

12

10

8
16

14

12

10

0 Col umn C Col umn D

1 2 3 4 5
SALES (yt)

4 5 6 7 8

2 2.5 3 3.5 4 4.5 5 5.5

5