The annual price of a finished product (in cents per pound) from 2000 to 2015 is given in the table below. The time variable t begins with t = 1 in 2000 and is incremented by 1 for each additional year.

a. Fit the straight-line model, E(Yt) = β0 + β1t, to the data.
b. Give the least squares estimates of the β's.
c. Use the least squares prediction equation to obtain the forecasts for 2016 and 2017.
d. Find 95% forecast intervals for 2016 and 2017.

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Year Price, Y; Year Price, Y 2000 2001 2002 2003 21.73 24.32 25.31 26.36 2008 2009 2010 2011 9. 10 11 12 24.42 25.49 26.19 27.31 27.31 27.58 24.79 25.36 2004 2005 2006 2007 2012 2013 2014 2015 13 14 15 16 24.40 24.24 25.87 26.86 1234 5678