The following table shows the annual revenues (in millions of dollars) of a pharmaceutical company over the period 1990-2011. The scatterplot indicates that the annual revenues have an increasing trend. Linear, exponential, quadratic, and cubic models were fit to the data starting with t = 1, and the following output was generated. Using the linear trend equation, one can say that the predicted revenue increases by ________.
A) $642,792,000 a year
B) $604,960,000 a year
C) $60,496,000 a year
D) $6,049,600 a year

Question

The following table shows the annual revenues (in millions of dollars) of a pharmaceutical company over the period 1990-2011.   The scatterplot indicates that the annual revenues have an increasing trend. Linear, exponential, quadratic, and cubic models were fit to the data starting with t = 1, and the following output was generated.  Using the linear trend equation, one can say that the predicted revenue increases by ________.
A) $642,792,000 a year 
B) $604,960,000 a year 
C) $60,496,000 a year 
D) $6,049,600 a year

Quizplus · Accepted Answer

The linear trend equation is given as Y = 604960t + 1988960. The coefficient of t (604960) represents the predicted increase in revenue per year. Therefore, the predicted revenue increases by $60,496,000 a year.

The Following Table Shows the Annual Revenues (In Millions of Dollars)