The linear trend forecasting equation for an annual time series containing 39 values (from 1966 to 2004) on total revenue (in billions of dollars) is shown below. Complete (a) through (e) below.
Yi = 1.5 + 1.9Xi
a. Interpret the Y-intercept, b0. Which statement below is the interpretation of the Y-intercept?
A. The Y-intercept b0 = 1.9 reflects the predicted total revenue in 1966.
B. The Y-intercept b0 = 1.5 reflects the predicted total revenue in 1966.
C. The Y-intercept b0 = 1.9 indicates that the revenue is predicted to increase by $1.9 billion/year.
D. The Y-intercept b0 = 1.5 indicates that the revenue is predicted to increase by $1.5 billion/year.
b. Interpret the slope, b1. Which statement below is the interpretation of the slope?
A. The slope b1 = 1.9 reflects the predicted total revenue in 1966.
B. The slope b1 = 1.9 indicates that the revenue is predicted to increase by $1.9 billion/year.
C. The slope b1 = 1.5 reflects the predicted total revenue in 1966.