The Equation of the Trend Line for the Data Based

question 16

Multiple Choice

The equation of the trend line for the data based on sales (in $1000) of a local restaurant over the years 2005-2010 is Sales= -265575+132.571x where x is the year. Using the trend line, the forecast sales for the year 2012 is ___.

• A) $1157.85
• B) $1157850
• C) $132571
• D) $2673304
• E) $1000327

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Definitions:

Diversify

The strategy of allocating investments or resources across a variety of different areas to reduce risk.

504 Loan Program

A Small Business Administration program that provides long-term, fixed-rate financing to small businesses for major fixed assets, such as land and buildings.

Certified Development Company

A nonprofit organization sponsored either by private interests or by state or local governments.

Fixed Assets

Long-term tangible assets held for business use and not expected to be converted to cash in the upcoming fiscal year, such as buildings, machinery, and vehicles.