With Computer Security Always a Hot-Button Issue, Demand Is Growing

question 116

Multiple Choice

With computer security always a hot-button issue, demand is growing for technology that authenticates and authorizes computer users.The following table gives the authentication software sales (in billions of dollars) , including projections, from 1999 through 2004. (Here, x = 0 represents 1999.) Find an equation of the least-squares line for these data.Please round the coefficients in your equation to three decimal places.Use the result to estimate the sales for 2006, assuming the projection is accurate.

• A)y = 0.759x + 2.273; $7.586 billion
• B)y = 0.749x + 2.262; $7.482 billion
• C)y = 0.759x + 2.273; $7.549 billion
• D)y = 0.749x + 2.262; $7.505 billion

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Definitions:

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing to buy at various prices.

Coefficient of Price Elasticity

A measure of the responsiveness of the quantity demanded of a good to a change in its price.

Demand Schedule

A table or graph showing the quantity of a product or service demanded at various prices.

Imperfectly Competitive Firm

A business operating in a market where it has some control over the price of its product because competition is not completely intense.