Exhibit 18

question 87

Short Answer

Exhibit 18.7.The following table shows the annual revenues (in millions of dollars)of a pharmaceutical company over the period 1990-2011. The autoregressive models of order 1 and 2, and ,were applied on the time series to make revenue forecasts.The relevant parts of Excel regression outputs are given below.
Model AR(1): Model AR(2): Refer to Exhibit 18.7.Compare Excel outputs for AR(1)and AR(2)and choose the forecasting model that seems to be better.

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Chemical compounds that can cause harm or damage to living organisms, the environment, or materials.

Unreasonable Risk

A hazard or danger that surpasses what is considered acceptable or safe under the circumstances.

National Priority List

A list in the United States under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) identifying hazardous waste sites eligible for long-term remedial action financed under the federal Superfund program.

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