A company has developed a linear trend equation that can be used to predict annual sales ofits product.F₁ = 100+12twhere• F, Annual sales.t is in years(a). Are annual sales increasing or decreasing? By how much?(b). Predict annual sales for year 5 using the equation.

The estimated equation for annual sales is Here is annual sales at year t from now.Annual sales…

A company has developed a linear trend equation that can be used to predict annual sales of its product. F₁ = 100+12t where F₁ Annual sales • . tis in years (a). Are annual sales increasing or decreasing? By how much? (b). Predict annual sales for year 5 using the equation.

A company has developed a linear trend equation that can be used to predict annual sales of its product. F₁ = 100+12t where F₁ Annual sales • . tis in years (a). Are annual sales increasing or decreasing? By how much? (b). Predict annual sales for year 5 using the equation.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter5: Business And Economic Forecasting

Section: Chapter Questions

Problem 1.2CE: Plot the logarithm of arrivals for each transportation mode against time, all on the same graph....

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Question

A company has developed a linear trend equation that can be used to predict annual sales of
its product.
F₁ = 100+12t
where
• F, Annual sales
.t is in years
(a). Are annual sales increasing or decreasing? By how much?
(b). Predict annual sales for year 5 using the equation.

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