Solve the Problem. -An Accountant Tabulated a Firm's Profits for Four Recent Years

question 158

Multiple Choice

Solve the problem.
-An accountant tabulated a firm's profits for four recent years in the following table: The accountant then fit both a linear graph and an exponential curve (seen below) to the data, in order to estimate future profits. Use the exponential graph to estimate the profits in the year 2001.

• A) About $750,000
• B) About $300,000
• C) About $1,300,000
• D) About $1,000,000

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Definitions:

Quantity Sold

The total number of units of a product or service sold over a specific period of time.

Primary Demand

The overall demand for a product category or market as a whole, rather than for a specific brand.

Demand Curve

A graphical representation showing the relationship between the price of a product and the quantity of the product demanded at those prices.