With Computer Security Always a Hot-Button Issue, Demand Is Growing

question 180

Multiple Choice

With computer security always a hot-button issue, demand is growing for technology that authenticates and authorizes computer users. The following table gives the authentication software sales (in billions of dollars) , including projections, from 1999 through 2004. (Here, x = 0 represents 1999.)
Find an equation of the least-squares line for these data. Please round the coefficients in your equation to three decimal places. Use the result to estimate the sales for 2006, assuming the projection is accurate.

• A) y = 0.759x + 2.273; $7.586 billion
• B) y = 0.749x + 2.262; $7.482 billion
• C) y = 0.759x + 2.273; $7.549 billion
• D) y = 0.749x + 2.262; $7.505 billion

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Definitions:

Consumer Price Index

Measure of the aggregate price level.

Laspeyres Index

A price index used to measure the price change between a base period and the current period, using the base period quantities as weights.

Paasche Index

An economic measure that calculates the change in the price level of goods and services purchased by the consumer in the current period compared to a selected base period, weighting the current period prices.

Laspeyres Price Index

Amount of money at current year prices that an individual requires to purchase a bundle of goods and services chosen in a base year divided by the cost of purchasing the same bundle at base-year prices.