TABLE 16-9
the Executive Vice-President of a Drug Manufacturing Firm

question 96

Short Answer

TABLE 16-9
The executive vice-president of a drug manufacturing firm believes that the demand for the firm's most popular drug has been evidencing an exponential trend since 1985. She uses Microsoft Excel to obtain the partial output below. The dependent variable is the log base 10 of the demand for the drug, while the independent variable is years, where 1985 is coded as 0, 1986 is coded as 1, etc.
SUMMARY OUTPUT

$\begin{array} { l r }\text {Regression Statistics}\\ \text { Multiple R } & 0.996 \\ \text { R Square } & 0.992 \\ \text { Adjusted R Square } & 0.991 \\ \text { Standard Error } & 0.02831 \\ \text { Observations } & 12 \end{array}$

$\begin{array}{lc} & \text { Coefficients } \\\text { Intercept } & 1.44 \\\text { Coded Year } & 0.068\end{array}$

-Referring to Table 16-9, the forecast for the demand in 2002 is______ .

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Definitions:

Bid Rate

The price at which a buyer is willing to purchase securities or other assets.

Offer Rate

The interest rate at which banks lend to their most credit-worthy customers, often referred to in the context of loans and savings.

Transaction Date

When control of the future economic benefits embodied in an asset are obtained from or transferred to another entity.

Exchange Rate

The price at which one currency can be exchanged for another currency.