You wish to predict the next four quarters’ sales. (You are aware that your product’s sales have no seasonal component.)

1. 1. Using regression techniques, find the linear time trend that best fits the sales data. How well does this equation fit the past data?
   2. Now estimate the constant-growth equation, Q = br ^t. Find the

coefficients for b and r. Does this equation perform better than the linear form in part (a)? Explain.

1. 1. Predict sales for the next four quarters using both equations.