Note that the x values start at 0 at the beginning, so year 4 would be X3.

he linear trend forecasting equation for an annual time series containing

39

values (from

1969

to

2007)

on net sales (in billions of dollars) is shown below. Complete (a) through (e) below.

Yi=1.9+0.9Xi

Question content area bottom

Part 1

a. Intepret the Y-intercept,

b0.

Which statement below is the interpretation of the Y-intercept?

A.

The Y-intercept

b0=0.9

reflects the predicted net sales in

1969.

B.

The Y-intercept

b0=1.9

indicates that sales are predicted to increase by

$1.9

billion/year.

C.

The Y-intercept

b0=1.9

reflects the predicted net sales in

1969.

D.

The Y-intercept

b0=0.9

indicates that sales are predicted to increase by

$0.9

billion/year.