The Following Table Shows the Annual Revenues (In Millions of Dollars)

question 103

Multiple Choice

The following table shows the annual revenues (in millions of dollars) of a pharmaceutical company over the period 1990-2011. The scatterplot indicates that the annual revenues have an increasing trend. Linear, exponential, quadratic, and cubic models were fit to the data starting with t = 1, and the following output was generated. Using the linear trend equation, one can say that the predicted revenue increases by ________.

• A) $642,792,000 a year
• B) $604,960,000 a year
• C) $60,496,000 a year
• D) $6,049,600 a year

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Definitions:

Product Life Cycle Concept

A framework that outlines the stages a product goes through from introduction to decline, including introduction, growth, maturity, and decline.

Life Cycle Curve

A graphical representation of the stages a product goes through from introduction to decline.

Imitators

Entities or individuals who replicate or copy the products, styles, or ideas of others, usually with the intent of capitalizing on the original's success.

Pioneers

New product introductions that establish a completely new market or radically change both the rules of competition and consumer preferences in a market; also called breakthroughs.