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:

Total Profits

The entirety of financial gains earned by a business after subtracting all costs and expenses from total revenues.

Advertising Costs

Costs associated with marketing a product, service, or brand to prospective buyers.

Profit Function

A mathematical representation showing the relationship between a firm's profits and its output or other relevant variables.

Advertising Costs

Expenses incurred in promoting a product or service to potential customers through various media channels.