A manager uses the following equation to predict monthly receipts: Yt = 40,000 + 150t.What is the forecast for December if t = 0 for the month of April?
A)40,050
B)41,050
C)41,200
D)41,300
E)41,500

Question

Quizplus · Accepted Answer

Since t = 0 for the month of April, then t = 8 for the month of December (April, May, June, July, August, September, October, November). Therefore: Yt = 40,000 + 150t --> Y8 = 40,000 + 150(8) = 41,200. Therefore, the forecast for December is $41,200.

A Manager Uses the Following Equation to Predict Monthly Receipts