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StatisticsQ&A LibraryConsider the table below which displays the price of a commodity for six consecutive years. Year Price (dollars) 1 250 2 255 3 253 4 255 5 259 6 261 Use the method of least squares to fit the model E(Yt) = β0+ β1t to the data. Write the prediction equation. Use the prediction equation to obtain forecasts of the prices in years 7 and 8. Find 95% prediction intervals for years 7 and 8.Start your trial now! First week only $4.99!*arrow_forward*

Question

Consider the table below which displays the price of a commodity for six consecutive years.

Year |
Price (dollars) |

1 |
250 |

2 |
255 |

3 |
253 |

4 |
255 |

5 |
259 |

6 |
261 |

- Use the method of least squares to fit the model E(Yt) = β0+ β1t to the data. Write the prediction equation.
- Use the prediction equation to obtain forecasts of the prices in years 7 and 8.
- Find 95% prediction intervals for years 7 and 8.

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