A linear trend equation for sales of the form

Q_t = a + bt

was estimated for the period 2003?2017 (i.e., t 5 2003, 2004, . . . , 2017). The results of the regression are as follows:

a. Evaluate the statistical significance of the estimated coefficients. (Use 5 percent for the significance level.) Does this estimation indicate a significant trend?b. Using this equation, forecast sales in 2018 and 2019.c . Comment on the precision of these two forecasts.

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DEPENDENT VARIABLE: QT R-SQUARE F-RATIO P-VALUE ON F OBSERVATIONS: 15 0.6602 25.262 0.0002 PARAMETER STANDARD VARIABLE ESTIMATE ERROR T-RATIO P-VALUE INTERCEPT 73.71460 34.08 2.16 0.0498 T 3.7621 0.7490 5.02 0.0002