A company has recorded annual sales for the past 14 years and found the following linear trend model: = 5.23 + 144.60t.This means that:
A)on average sales are increasing by of 5.23 per year.
B)on average sales are increasing by of 144.6 per year.
C)there is a seasonal component in the data.
D)sales in year 1 were 5.23.

Question

A company has recorded annual sales for the past 14 years and found the following linear trend model:  = 5.23 + 144.60t.This means that:
A)on average sales are increasing by of 5.23 per year. 
B)on average sales are increasing by of 144.6 per year. 
C)there is a seasonal component in the data. 
D)sales in year 1 were 5.23.

Quizplus · Accepted Answer

The coefficient for the variable "t" (time) is 144.60, indicating that on average sales are increasing by $144.60 per year. The constant term (5.23) represents the expected sales in year 0, but not in year 1 specifically. There is no indication of a seasonal component mentioned in the question.

A Company Has Recorded Annual Sales for the Past 14