The fitted annual sales trend is Y_t = 187.3e^-.047^t. On average, sales are: A)rising by an increasing absolute amount each year. B)rising by a declining absolute amount each year. C)falling by a declining absolute amount each year. D)falling by an increasing absolute amount each year.

Question

Quizplus · Accepted Answer

The given equation is a model of exponential decay, indicated by the negative exponent (-.047t). This means sales are falling each year, and because it's an exponential function, the amount by which sales fall decreases each year.

The Fitted Annual Sales Trend Is Yt = 187

The Fitted Annual Sales Trend Is Y_t = 187