The Size of the Average U

question 107

Multiple Choice

The size of the average U.S.farm has been growing steadily over the years.The following data, obtained from the U.S.Department of Agriculture, gives the size of the average farm y (in acres) from 1940 through 1991. (Here, x = 0 corresponds to the beginning of the year 1940.) Find the equation of the least-squares line for these data.Use the equation found to estimate the size of the average farm in the year 2005.

• A)y = 8.59x + 139; 697 acres
• B)y = 6.26x + 167; 574 acres
• C)y = 7.4x + 139; 620 acres
• D)y = 7.4x + 139; 14,976 acres

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Definitions:

Commercial Dealing

Activities involved in the purchase and sale of goods and services in the marketplace.

Industry

The economic activity concerned with the production of goods, services, and the extraction of raw materials.

Requirements Contract

An agreement in which one party agrees to purchase all of his or her requirements of a particular product from another party. See also output contract.

Output Contract

An agreement in which a seller agrees to sell “all the goods we manufacture” or “all the crops we produce” to a particular buyer. See also requirements contract.