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.

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Definitions:

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The physiological process that allows an organism to maintain its core internal temperature within a narrow range, regardless of external temperature.

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