The data in Strategic represent the amount of oil, in billions of barrels, held in the U.S. strategic oil reserve, from 1981 through 2009.
a. Plot the data.
b. Compute a linear trend forecasting equation and plot the trend line.
c. Compute a quadratic trend forecasting equation and plot the results.
d. Compute an exponential trend forecasting equation and plot the results.
e. Which model is the most appropriate?
f. Using the most appropriate model, forecast the number of barrels, in billions, for 2010. Check how accurate your forecast is by locating the true value for 2010 on the Internet or in a library.
g. The actual physical capacity of the strategic oil reserve is 727 billion barrels of oil. If you knew that before making a forecast in (f), how would that change your forecast?