For those of you who thought...

 that you could "avoid" higher level math in an MBA program---

I bring you an excerpt from my weekly problem set in business forecasting:

 

 

 

I'm going to go cry in the corner now.

Comments

[Bruce]

Ria and Isaac!
Have you done those extra "backshifting" exercises? If you have, you should be laughing at these problems and not crying...but the part that really hurts is that Ria thought one of the classes was painful!!? And all this time I thought everyone was having an absolute ball in my class! Seriously, though, what are the three managerial reasons that this notation is important?

[Ria]

Yep- that class was an extremely painful experience...Justin, Andre...since you both seem so full of insights, maybe I can convince you to do my h/w?

[Andre]

Isaac, whatever you do...don't forget about the residuals! Insuring they satisfy both linearity and homoscedasticity is critical!

[Justin Patterson]

If I am reading that correctly, it just looks like an autoregressive model that seeks to capture a persist trend in past data and incorporate said trend into the forecast of future values. Notation always varies and I am really squinting trying to read it, so I could be wrong, but I digress... You can come out of the corner now.