Final answer:
The independent variable in this model is the year and the dependent variable is the annual CPI rate. The trend line equation can be used to estimate the CPI for 2000. The accuracy of the model can be assessed using the correlation coefficient.
Step-by-step explanation:
a. The independent variable in this model is the year, which represents the passage of time from 1960 to 2014.
b. The dependent variable in this model is the annual CPI rate, which represents the inflation rate for each year.
c. To estimate the CPI for 2000 using the trend line equation, substitute the value of 2000 into the equation and solve for the dependent variable.
d. The accuracy of this model can be assessed by calculating the correlation coefficient, which measures the strength and direction of the relationship between the independent and dependent variables.
e. The slope of the trend line represents the rate of change in the dependent variable for each unit increase in the independent variable. In this case, it would represent the annual change in the CPI rate.