The following linear trend equation was developed for the annual sales of the Jordan Manufacturing Company. ŷ = 500 + 60t ($000). How much are sales increasing?
A) $60,000 per year
B) $6,000 per month
C) $500,000 per year
D) $6,000 per year
E) $500 per month

Question

Quizplus · Accepted Answer

The coefficient of t (time) in the linear trend equation, which is 60, represents the annual increase in sales. Since the equation is given in $000, 60 translates to $60,000 per year.

The Following Linear Trend Equation Was Developed for the Annual