The president of State University wants to forecast student enrollments for this academic year based on the following historical data: $$\begin{array} { l l }
\text { Year } & \text { Enrollments } \
\hline \text { 5 years ago } & 15,000 \
4 \text { years ago } & 16,000 \
\text { 3 years ago } & 18,000 \
2 \text { years ago } & 20,000 \
\text { Last year } & 21,000
\end{array}$$ What is the forecast for this year using the least squares trend line for these data?
A) 18,750
B) 19,500
C) 21,000
D) 22,650
E) 22,800

Question

The president of State University wants to forecast student enrollments for this academic year based on the following historical data: $$\begin{array} { l l } 
\text { Year } & \text { Enrollments } \
\hline \text { 5 years ago } & 15,000 \
4 \text { years ago } & 16,000 \
\text { 3 years ago } & 18,000 \
2 \text { years ago } & 20,000 \
\text { Last year } & 21,000
\end{array}$$ What is the forecast for this year using the least squares trend line for these data?
A) 18,750
B) 19,500
C) 21,000
D) 22,650
E) 22,800

Quizplus · Accepted Answer

The least squares trend line for these data is:$$y = 15000 + 1500x$$where x is the number of years since 5 years ago.This year is x = 0, so the forecast for this year is:$$y = 15000 + 1500(0) = 15000$$

The President of State University Wants to Forecast Student Enrollments