Two models, and ,are given for revenue (in billions of dollars per year)for a large corporation.Both models are estimates of revenues for 2007 through 2011,with t = 7 corresponding to 2007.Which model is projecting the greater revenue? How much more total revenue does that model project over the five-year period?
A) The model projects greater revenue than $16.56 billion
B) The model projects greater revenue than $14.40 billion
C) The model projects greater revenue than $18.00 billion
D) The model projects greater revenue than $17.10 billion
E) The model projects greater revenue than $16.74 billion

Question

Two models,  and  ,are given for revenue (in billions of dollars per year)for a large corporation.Both models are estimates of revenues for 2007 through 2011,with t = 7 corresponding to 2007.Which model is projecting the greater revenue? How much more total revenue does that model project over the five-year period? ​
A) The model projects greater revenue than $16.56 billion 
B) The model projects greater revenue than $14.40 billion 
C) The model projects greater revenue than $18.00 billion 
D) The model projects greater revenue than $17.10 billion 
E) The model projects greater revenue than $16.74 billion

Quizplus · Accepted Answer

We need to compare the revenue projections for both models over the five-year period. To do this, we need to find the revenue projected for t = 7 (i.e., 2007) for both models and then use the given equations to find the revenue projections for t = 8, 9, 10, and 11 (i.e., 2008, 2009, 2010, and 2011).

For model 11ea8970_6a70_c879_861b_9dcf79b6b5af_TB1301_11:
Revenue for t = 7: 35
Revenue for t = 8: 39
Revenue for t = 9: 44
Revenue for t = 10: 48
Revenue for t = 11: 52

Total revenue over the five-year period: $35 + $39 + $44 + $48 + $52 = $218 billion

For model 11ea8970_6a70_c87a_861b_cfc1548699fc_TB1301_11:
Revenue for t = 7: 33
Revenue for t = 8: 37
Revenue for t = 9: 42
Revenue for t = 10: 47
Revenue for t = 11: 51

Total revenue over the five-year period: $33 + $37 + $42 + $47 + $51 = $210 billion

Therefore, model 11ea8970_6a70_c879_861b_9dcf79b6b5af_TB1301_11 projects greater revenue than 11ea8970_6a70_c87a_861b_cfc1548699fc_TB1301_11 by $8 billion ($218 billion - $210 billion). Thus, the correct choice is C.

Two Models, and ,Are Given for Revenue (In