Posted: April 20th, 2022

One method is a simple time-series extrapolation or regression against time.

One method is a simple time-series extrapolation or regression against time. These extrapolations could also be by:
One method is a simple time-series extrapolation or regression against time. These extrapolations could also be by

(1) fixed increments (collections elevated by $5,000 in every of the final 5 years, so they’re estimated to extend by $5,000 this 12 months);

(2) fixed share change (collections elevated by 5 p.c in every of the final 5 years, so they’re estimated to extend by 5 p.c this 12 months);

(three) simple progress fashions utilizing the typical annual compounding system developed in Chapter four; and

(four) linear or nonlinear time tendencies during which income for the finances 12 months is estimated as an arithmetic operate of time (R a bt) or as a logarithmic operate of time (lnR a bt), the place R equals collections from the income supply and t equals a time index, selecting between the tendencies in accordance with which is judged more than likely to supply a affordable estimate.

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A simple time-series extrapolation or regression against time is one method. These extrapolations might be made by:
A simple time-series extrapolation or regression against time is one method. These extrapolations might be made by

(1) fixed increments (collections elevated by $5,000 in every of the earlier 5 years and are anticipated to extend by $5,000 this 12 months);

(2) fixed share change (collections have elevated by 5% in every of the final 5 years, and are anticipated to extend by 5% this 12 months);

(three) simple progress fashions based mostly on the system for common annual compounding developed in Chapter four; and

(four) linear or nonlinear time tendencies during which income for the fiscal 12 months is estimated as an arithmetic operate of time (R a bt) or as a operate of time (R a bt).

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