A First-Order Autoregressive Model for Stock Sales Is $\text { Sales } _ { i } = 800 + 1.2 \left( \text { Sales } )_ { i - 1 } \right. \text {. }$

question 13

Short Answer

A first-order autoregressive model for stock sales is: $\text { Sales } _ { i } = 800 + 1.2 \left( \text { Sales } )_ { i - 1 } \right. \text {. }$ .
If sales in 2012 is 6,000, the forecast of sales for 2013 is __________.

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Definitions:

Stability

The quality of being consistent, steady, and unchanging over time, often used in psychological assessments of personality or mood.

Physiological Balance

The state of equilibrium in the body’s internal environment maintained by various feedback mechanisms, essential for healthy functioning and homeostasis.

Biological Need

A basic requirement of the living organism for its survival, such as food, water, shelter, and oxygen.

Homeostasis

The process by which biological systems tend to maintain stability while adjusting to conditions that are optimal for survival.