The Manager of a Company Believed That Her Company's Profits

question 60

Short Answer

The manager of a company believed that her company's profits were following an exponential trend. She used Microsoft Excel to obtain a prediction equation for the logarithm (base 10) of profits:
log₁₀(Profits) = 2 + 0.3X
The data she used were from 2005 through 2010 coded 0 to 5. The forecast for 2011 profits is ________.

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Definitions:

Supply Decrease

A reduction in the quantity of a good or service that producers are willing and able to offer at any given price.

Demand Decrease

A situation where there is a reduction in the quantity of a good or service that consumers are willing and able to purchase at any given price.

Equilibrium

A condition or state in which economic forces are balanced, such as the point where supply equals demand.

Market Clear

A situation in which the market reaches a state where quantity supplied equals quantity demanded, leaving no surplus or shortage.