Business Statistics

Chapter 16 | Time Series and Index Numbers 629

From Figure 16.62, the quadratic trend forecasting equation can be stated as below:

Profit after tax = 5543 + 168.6 (Time period) + 182.6 (Time Period)

2

The estimated profit after tax in 2010–2011 can be obtained by substituting time period = 22 in the

quadratic trend forecasting equation given. So, the estimated profit after tax for year 2010–2011 is

Profit after tax = 5543 + 168.6 × (22) + 182.6 × (22)

2

= 97630.6 million rupees

Therefore, on the basis of the quadratic regression model forecasted profit after tax for year

2010–2011 is equal to 97630.6 million rupees.

Bhart Heavy Electricals Ltd ...