1. The following data are a local newspaper's readership ?gures, in thousands:

Year: 1996   1997   1998  1999   2000   2001  2002   2003   2004   2005   2006   2007

Readers: 53      65      74     85      92    105    120    128     144    158     179    195

Do a trend regression on the data, and forecast the total number of readers for 2008 and for 2009.

2. The following data are the share of foreign shareholding as a percentage of total market capitalization in Korea for the past 12 years: 5, 10, 10, 12, 13, 14, 18, 21, 30, 37, 37, 40.2 Develop a forecasting model for these data and forecast foreign share- holding percentage for Korea in the following year.

3. Would trend analysis, by itself, be a useful forecasting tool for monthly sales of swimming suits? Explain.

4. A ?rm's pro?ts are known to vary with a business cycle of several years. Would trend analysis, by itself, be a good forecasting tool for the ?rm's pro?ts? Why?