If St = -€6,440.8 + €1,407.3t, t is in years, and sales is in millions of euros:
A)the projected annual rate of change in sales is above the actual historical amount of change per year.
B)the projected annual rate of change in sales is below the actual historical amount of change per year.
C)the slope of the sales/time relation is generally increasing.
D)differences between actual and fitted values are generally positive in both early and later periods.

Question

Quizplus · Accepted Answer

The coefficient of t (€1,407.3) represents the projected annual rate of change in sales, which is a positive value indicating an increase in sales over time. There's no comparison to actual historical amounts provided, so we can't determine if it's above or below historical changes without additional data. However, the statement is correct in that it describes the slope of the equation, which is positive, indicating an increase.