For the data below Determine the trend line Determine the pr

For the data below: Determine the trend line. Determine the predicted value for 2004.

Solution

(a)Here to find the trend line we fit a linear regression line to the time series data and obtain the trend line as-

Y_t = 85.2 - 1.81099*t

where Y_t denotes the automobile sales in the t^th year and t denotes the year with origin as 0.

(b)

Predicted value for 2004=57.9890