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Perfect Population Projections Inc. (PPP) has entered into a contract with the city of Popular, Pennsylvania, to project the future population of the city. Popular has become a popular place in recent years as indicated by the following data:
Total
Basic
Nonbasic
Year
Population
Employment
2005
50,000
25,000
6,250
18,750
2006
53,000
26,500
6,625
19,875
2007
57,000
28,500
7,125
21,375
2008
65,000
32,500
8,125
24,375
2009
70,000
35,000
8,750
26,250
2010
?
9,000*
*Estimated from surveys
The contract states that PPP must project Popular's population for the year 2005 using both a simple linear method and an economic base analysis. The ratio of population to total employment is 2.0833.
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