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

question 62

Multiple Choice

The following table shows the annual revenues (in millions of dollars) of a pharmaceutical company over the period 1990-2011. The Excel scatterplot shown indicates that the annual revenues have an increasing trend.Therefore,linear,exponential,quadratic,and cubic models were used to fit the trend,and the following relevant information became available after applying linear regression. Which of the following is a revenue forecast for 2012 found by the polynomial trend equation with the best fit?

• A) About 2 billion and 149 million dollars
• B) About 2 billion and 189 million dollars
• C) About 2 billion and 334 million dollars
• D) About 2 billion and 34 million dollars

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Definitions:

Federal Income Taxes Payable

The amount of income tax a company or individual owes to the federal government, which is due within the tax filing period.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of a business, whichever is longer.

Unearned Revenues

Income received by a company for goods or services that have yet to be provided, recorded as a liability on the balance sheet.

Prepaid Expenses

Costs that are paid in advance for goods or services, which are recognized as expenses over time as the benefits are received.