In the linear trend equation, Tt = b0 + b1t, what does b0 represent?

In the linear trend equation represented by Tt = b0 + b1t, b0 refers to the Y-intercept of the trend line. The Y-intercept is the value of the dependent variable (in this case, Tt) when the independent variable (t) is equal to zero. This means that b0 gives the starting point of the trend line on the graph, indicating the estimated value of Tt when time (t) is at its beginning stage.

Understanding the role of b0 is crucial in time series analysis, as it sets the baseline from which future values are projected. The value of b0 can provide insights into the initial condition of the dataset being analyzed before any influence of the trend captured by b1 is applied.