Listed below is the selling price for a share of PepsiCo Inc. at the close of each year.
Year
Code
Price
1990
1
12.9135
1991
2
16.8250
1992
3
20.6125
1993
4
20.3024
1994
5
18.3160
1995
6
27.7538
1996
7
29.0581
1997
8
36.0155
1998
9
40.6111
1999
10
35.0230
2000
11
49.5625
2001
12
48.6800
2002
13
42.2200
2003
14
46.6200
2004
15
52.2000
2005
16
59.8500
2006
17
62.0000
2007
18
77.5100
2008
19
54.7700
2009
20
60.8000
2010
21
65.3300
2011
22
66.3500
2012
23
68.4300
a. Plot the data.
b. Determine the least squares trend equation.
c. Calculate the points for the years 1995 and 2000.
d. Estimate the selling price in 2016. Does this seem like a reasonable estimate based
on the historical data?
e. By how much has the stock price increased or decreased (per year) on average during
the period?