Financial Risk Manager Part 1

Get started today

Ultimate access to all questions.

Deep dive into the quiz with AI chat providers.

We prepare a focused prompt with your quiz and certificate details so each AI can offer a more tailored, in-depth explanation.

An investment analyst wants to fit the weekly sales (in millions) of his company by using the sales data from Jan 2018 to Feb 2019. The regression equation is defined as:

\ln Y_t = 5.105 + 0.044t, \quad t = 1, 2, ..., 100

What is the trend value estimate of the sales in the 90th week?

Other

Community

NNikitesh

Last updated: February 2, 2026 at 10:22

8,647.28 Million

7,947.26 Million

8,537.38 Million

8,237.48 Million

Explanation:

From the regression equation, $\hat{\beta}_0 = 5.105$ and $\hat{\beta}_1 = 0.044$ . Under log-linear trend models, the predicted trend value is given by:

\ln Y_t = \hat{\beta}_0 + \hat{\beta}_1 t

\Rightarrow Y_t = e^{\hat{\beta}_0 + \hat{\beta}_1 t}

Therefore:

Y_{90} = e^{5.105 + 0.044 \times 90} = e^{5.105 + 3.96} = e^{9.065} = 8,647.28 \text{ Million}

The calculation shows that the trend value estimate for the 90th week is 8,647.28 million.

Powered ByGPT-5.2

Comments

Loading comments...