Loans and leases data for the years 2000 through 2010 for
the Bank of the Ozarks are shown below:
a. Produce a time-series plot of these data.
b. Fit a linear trend line to these data.
c. Conduct a hypothesis test of the significance of the
linear trend model developed in part b. Use a level of significance of 0.05.
d. For the years 2000 through 2010, what is the predicted
value each year for loans and leases using the linear trend model estimated in
e. Calculate the MAD for the linear trend forecasts
developed in part d.
f. Use the linear trend model to forecast loans and leases
for the Bank of the Ozarks for 2011 and 2012.