A chain of photography and electronics stores created a Web site to promote its photography lessons. The number of weekly visitors grew steadily, at a rate of about 300 new visitors each week. This timeplot shows the counts of unique visitors over the last 33 weeks.
To describe the growth, an analyst used a linear time trend and estimated the equation to be
with denoting the first week, the second, and so forth. The company hired a summer employee who had taken some statistics courses, and she suggested using a first-order autoregression [i.e., an AR(1) Model] instead of this time trend.
(a) What do you think the intercept and slope of the AR (1) equations are going to be?
(b) Do you think it’s a good idea to use an autoregression in place of the linear time trend in this situation?
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here