о

6

Taking one standard error on either side of the medium forecast means that there is a 60% chance of the

true elasticity being within this range.

Table 1 Government Forecasts

Medium

Low

High

Year

Sales

Growth Sales Growth

Sales % Growth

Million

Units

Million Units

Million

Units

1977 5,775

12.5

5,599 11.0

5,775

12.5

1978 6,295

9.0

6,047

8.0

6,353

10.0

1979 6,862

9.0

6,351 8.0

6,988

10.0

1980 7,479

9.0

7,053

8.0

7,687

10.0

1981 8,152

9.0

7,618

8.0

8,456

10.0

1982 8,886

9.0

8,227

8.0

9,301

10.0

1983 9,685

9.0

8,885

8.0

10,231

10.0

1984 10,387

7.3

9,462

6.5

11,050

8.0

1985 11,140

7.3

10,078

6.5

11,934

8.0

1986 11,753

5.5

10,582

5.0

12,650

6.0

CLP's Forecasts

(a) Basic Approach

CLP, having looked at several methods of forecasting, including regression analysis, the Gompertz curve method which uses a simple time trend and various mathematical equations, based their eventual forecasts on the Aoki method of aligning generation per head with GDP per head.

Their comments on and forecasting derived from this

approach are set out below.

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