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
|
Total
|
Basic
|
Nonbasic
|
|
Year
|
Population
|
Employment
|
Employment
|
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.