Chapter 16, Problem 11PS

The linear trend forecasting equation for an annual time series containing 42 values (from 1976 to 2017) on net sales $\text{(in}\text{\$billions)}$ is

${\hat{Y}}_i=1.2+0.5{\text{X}}_i$

a. Interpret the Y Intercept, $b_{0.}$ .

b. Interpret the slop, $b_{1.}$ .

c. What is the fitted trend value for the tenth year?

d. What is the fitted trend value for the most year?

e. What is the projected trend forecast two years after the last value?