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

question 120

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. Which of the following is the revenue forecast for 2012 found by the linear trend equation?

• A) About 2 billion 149 million dollars
• B) About 2 billion and 189 million dollars
• C) About 2 billion and 334 million dollars
• D) About 2 billion and 34 million dollars

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Definitions:

Fiscal Policy

Government strategies to influence a country's economy through public spending and taxation decisions.

Monetary Policy

The process by which the central bank of a country controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency.

United States Government Budget

The budget prepared by the federal government, outlining its projected revenues and expenditures for the forthcoming fiscal year.

Fiscal Year

A one-year period used by governments and businesses for accounting and budget purposes, which may not align with the calendar year.