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

question 8

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 a revenue forecast for 2012 found by the exponential trend equation?

• A) About 2 billion and 334 million dollars
• B) About 2 billion and 189 million dollars
• C) About 2 billion and 141 million dollars
• D) About 2 billion and 34 million dollars

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Definitions:

Probability

A measure of the likelihood that an event will occur, quantified between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Null Hypothesis

A type of hypothesis used in statistics that suggests there is no significant difference or effect in a particular condition, serving as a default position until evidence suggests otherwise.

P < .05

A statistical threshold indicating that the probability of observing the obtained result, or more extreme, if the null hypothesis is true, is less than 5%.

T-test

A statistical test used to compare the means of two groups or test a single mean against a known value.