Amount of money spent on advertising


Problem:

The following time series data represent the yearly amounts spent on advertising (in millions of dollars) by a large toy company:

17.1,    19.0,    18.8,    20.9,    22.0

This series of data begins in year 1998 (i.e., time period  t = 1 corresponds to 1998). Using regression analysis, a linear trend line of the form Tt = 16.04 + 1.17t was fit to the data. Using this information, generate a forecast for the total yearly amount of money that will be spent on advertising in 2007.

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Marketing Management: Amount of money spent on advertising
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