Consider the Following Linear Trend Equation of an Industry's Sales

question 12

Multiple Choice

Consider the following linear trend equation of an industry's sales: yt = 120 + 12 xt,where t is the time index (t = 1,2,... ,n) and yt is annual sales (in millions of dollars) .Which is the most reasonable conclusion?

• A)We would forecast that sales will increase $12 million in the next year.
• B)We would forecast that sales will increase 12 percent in the next year.
• C)On the average,sales will increase 12/(120 + 12 × 10)= 0.05,or 5 percent next year.
• D)The year-to-year average change will depend on the value of t.

---

Definitions:

Stronger

Pertaining to having increased physical strength, durability, or emotional or intellectual resilience.

Susceptible

The state or fact of being likely to be influenced or harmed by a particular thing or condition.

Psychoneuroimmunology

The interdisciplinary scientific field studying the interrelation between psychological processes, the nervous system, and the immune system's functioning.

Brain Chemistry

The complex interplay of chemicals and neurotransmitters in the brain that influences mood, behavior, and cognitive functions.