(a) Plot U.S. petroleum imports on a graph.
(b) Describe the trend (if any) and discuss possible causes.
(c) Fit both a linear and an exponential trend.
(c) Interpret each fitted trend equation, explaining the implications.
(d) Make a projection for 2010. Do you believe it?
(e) To whom is this issue relevant? Note: Time increments are 5 years, so use t = 11 for the 2010 forecast.

Transcribed Image Text:

U.S. Annual Petroleum Imports, 1960-2005 (billions of barrels) Imports Imports ear ear 1960 1965 1970 1975 1980 664 901 1,248 2,210 2,529 1985 1990 1995 2000 2005 1,850 2,926 3,225 4,194 4,937