The Port Authority of Jamaica recently asked Correctional Services torelocate its women prisoners from Fort August as it needs the space to facilitate expansion of its container terminal.The port has experienced the following container throughput during the past 12 years, expressed as TEUs (i.e., 20-foot equivalent unit, a standard unit of measure for containers):

YEAR TEUs (1,000s)

1 526.1

2 549.4

3 606.0

4 627.0

5 695.7

6 734.9

7 761.1

8 845.4

9 1021.1

10 1,137.6

11 1,173.6

12 1,233.4

a)Develop the model (equation) for the linear trend line for these time series using the formulae.

b)Comment on what is happening to container throughput at the Port Authority.

c)Calculate the value of the Product Moment Co-efficient of Correlation.Comment on the strength of the relationship between the independent and dependent variables. (Remember-1 r +1)

d)What is the percentage of the variation in TEUs that is a result of the behavior of time i.e., what is the value of the Co-efficient of Determination?Is the model a good estimator?Explain. (Remember0 r 1)

e)Use Excel add-in (Regression) to verify the model you developed.