Instruction 14-12
the Executive Vice-President of a Drug Manufacturing Firm

question 170

Short Answer

Instruction 14-12
The executive vice-president of a drug manufacturing firm believes that the demand for the firm's most popular drug has been evidencing an exponential trend since 1995.She uses Microsoft Excel to obtain the partial output below.The dependent variable is the log base 10 of the demand for the drug,while the independent variable is years,where 1995 is coded as 0,1996 is coded as 1,etc.
SUMMARY OUTPUT
Regression Statistics
$\begin{array} { l r } \text { Multiple R } & 0.996 \\ \text { R Square } & 0.992 \\ \text { Adjusted R Square } & 0.991 \\ \text { Standard Error } & 0.02831 \end{array}$
Observations $\quad \quad \quad \quad \quad \quad \quad \quad$ 12
$\quad \quad \quad \quad \quad \quad$ Coefficients
$\begin{array} { l r } \text { Intercept } & 1.44 \\ \text { Coded Year } & 0.068 \end{array}$
-Referring to Instruction 14-12,the forecast for the demand in 2009 is ________.

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Definitions:

Private Enterprise System

An economic system where private individuals or businesses own capital goods and operate with minimal government intervention.

Equilibrium Price

The market price at which the quantity of goods supplied equals the quantity of goods demanded, resulting in a stable market condition.

Economic Choices

Decisions made by individuals, firms, or governments regarding the allocation of resources and the distribution of goods and services.

Pure Competition

A market structure characterized by many sellers offering identical products, where no single seller has any influence over market price or conditions.