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# Linear Trend

The president of a small manufacturing firm has been concerned about continual growth in manufacturing cost over the past several years. the following is time series of the cost per unit(in dollars) for the firm's leading product over the past eight years

Year Cost per Unit (\$)
1 20.00
2 24.50
3 28.20
4 27.50
5 26.60
6 30.00
7 31.00
8 36.00

a.Graph this time series. Does a linear trend appear?

b. develop the equation for the linear trend component for the time series. What is the average cost increase per year?

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Dear Student,

Please see my solution attached in the Excel file. I hope you find ...

#### Solution Summary

The solution does a great job of answering the question. The solution is brief and concise and very easy to follow along. All the steps are clearly shown and Excel formulas are provided so that the student can answer similar questions in the future. It can be easily understood by anyone with a basic understanding of the topic. Overall, an excellent solution.

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