Use the trend equation to calculate the points for 2007 and

Use the trend equation to calculate the points for 2007 and 2010.(Round your answers to 3 decimal places.)

By how much have sales increased (or decreased) per year on the average during the period? (Round your answer to 4 decimal places.)

Solution

b)

Using technology, we get              
              
slope =    0.014571429          
intercept =    7.707333333          
              
Thus, the regression line is              
              
y^ = 7.707333333 + 0.014571429 t [ANSWER]

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C)

We plug in the values of t to the regression line above.

For 2007, t = 3:

y^(2007) = 7.751047619 [answer]

For 2010, t = 6:

y^(2010) = 7.794761905 [answer]

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d)

For 2011, t = 7:

y^(2011) = 7.809333333 [answer]

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e)

The average slope is

m = (y(2010) - y(2005))/(6-1)

m = (7.50-7.35)/6

m = 0.025 BILLION DOLLARS A YEAR [ANSWER]