Question: The Fifth Division of the U.S. Army wants to forecast personnel costs or the next 5 years. A search of the records reveals the accompanying data. Using these data, forecast personnel costs for 2008, 2009, 2010, 2011, and 2012. Place 95% confidence limits around these estimates.

Year Costs

2007 51,576

2006 49,015

2005 40,845

2004 34,497

2003 28,625

2002 25,376

2001 21,163

2000 18,468

1999 14,992

1998 13,633

1997 12,069

1996 11,452

1995 10,321

1994 9,329

1993 7,982

1992 7,877

1991 7,648

1990 7,071

1989 6,411

1988 5,409

1987 4,657

1986 4,017

a) Draw the scatter diagram

b) Run the linear regression and use it to make the forecast for 2008, 2009, 2010, 2011 and 2012

Skip the 90% confidence limit