question 4

The president of a small manufacturing firm is concerned about the continual increase in manufacturing costs over the past several years. The following figures provide a time series of the cost per unit for the firm's leading product over the past eight years. (a) Construct a time series plot. What type of pattern exists in the data? The time series plot shows a seasonal pattern. - The time series plot shows a linear trend. The time series plot shows a nonlinear trend. The time series plot shows a horizontal pattern. (b) Use simple linear regression analysis to find the parameters for the line that minimizes MSE for this time series. (Round your answers to two decimal places.) b0=b1= (c) What is the average cost increase (In \$) that the firm has been realizing per year? (Round your answer to two decimal places.)