A trend line has been fitted to a company's annual sales. The trend is given by yt = 50 + 5t, where t is the time index (t = 1, 2, …, n) and yt is annual sales (in millions of dollars) . The implication of this trend line is:
A) sales will increase by $5 million every year.
B) sales increase exactly 5 percent every year.
C) sales increase on the average 5 percent per year.
D) sales increase on the average $5 million per year.
Correct Answer:
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