The president of a small manufacturing firm is concerned about the continual growth in manufacturing costs in the past several years. The data series of the cost per unit for the firm€™s leading product over the past eight years are given as follows:

a. Construct a chart for this time series. Does a linear trend appear to exist?
b. Develop a simple linear regression model for these data. What average cost increase has the firm been realizing per year?

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Year Cost/Unit (S) Year Cost/Unit (S) 1 20.00 2 24.50 3 28.20 4 27.50 5 26.60 6 30.00 7 31.00 8 36.00