Question: The linear trend forecasting equation for an annual time series containing 40 values (from 1969 to 2008) on real net sales (in billions of constant

The linear trend forecasting equation for an annual time series containing 40 values (from 1969 to 2008) on real net sales (in billions of constant 1998 dollars) is:

Yi = 1.2 + 0.5Xi ˆ

a. Interpret the Y intercept b0.

b. Interpret the slope b1.

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

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

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

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