I need help in this question. Please do it correctly and dont make it wrong. Please do it on MS WORD and copy/paste here and use the below formulas to do it. Please follow the example and the formulas.

Question 6 (25 points) City government has collected the following data on the number of annual sales tax collection over the past six years: Year Annual Sales Tax Collection (in millions) 1 1.0 2 1.9 3 2.0 4 1.8 5 2.1 6 2.5 Using linear trend (trend analyses) to predict the annual sales tax collection in year 8 as function of time. Linear Trend A simple data plot can reveal the existence and nature of a trend Linear trend equation y = a + bx where = computed value of the variable to be predicted (dependent variable) a = y-axis intercept b = slope of the regression line x = the independent variable Estimating Slope and Intercept Slope and intercept can be estimated from historical data y = a + bx b= Exy nxy y 2 mx2 a = y - bx 74 Least Squares Example Time Electrical Power Year Period (x) Demand x2 2003 1 74 1 2004 2 79 4 158 2005 3 80 9 240 2006 4 90 16 360 2007 5 105 25 525 2008 6 142 36 852 2009 7 122 49 854 x = 28 y = 692 Ex2 = 140 xy = 3,063 X= 4 y = 98.86 Exy - ny 3,063 - (7)(4)(98.86) b = = 10.54 x - nx? 140 - (7)(42) a = y-bx = 98.86 - 10.54(4) = 56.70 LO 3.11 3-29