The regression trend line for annual energy consumption for 1985-2005 is given by ŷt = 70 + 0.53t, where t = 1 for 1985. If the annual energy consumption for 2000 was 82.5, then the percentage of trend for 2000 was:
A)105.122%.
B)95.127%.
C)104.321%.
D)98.462%.

Question

Quizplus · Accepted Answer

To calculate the percentage of trend for 2000, first find the trend value for 2000 using the given equation. For 2000, $t = 2000 - 1984 = 16$, so $ŷ_{2000} = 70 + 0.53 \times 16 = 78.48$. The actual value for 2000 is 82.5. The percentage of trend is calculated as $\frac{Actual}{Trend} \times 100 = \frac{82.5}{78.48} \times 100 = 105.122%$.

The Regression Trend Line for Annual Energy Consumption for 1985-2005