Year Actual fire claims Linear Trend Claims Actual Fire Losses Linear Trend For Losses 2001 12 $17,500 2002 10 $45,000 2003 8 $42,000 2004 11 $60,000…

2007        

2008      

1.    The table above shows the figures for Fire Claims and the amount of Fire Losses (in current dollars) for the city of Rio Grande, from 2001 to 2006.

I.- Using the Linear Regression Analysis, write the linear equation that best fits the data for Actual Fire Claims.

II.- Compute the linear trend for Claims from 2001 to 2006.

III.- Compute the forecast of number of Claims for 2007 and 2008

IV.- Using the Linear Regression Analysis, write the linear equation that best fits the data for Actual Fire Losses.

V.- Compute the linear trend for Fire Losses from 2001 to 2006.

VI.- Compute the forecast of Fire Losses for 2007 and 2008

VII.- Present a graph for the Actual Values and the Linear Trend Values for Fire Claims for the whole period. Do the same for Fire Losses. 

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