Exhibit 18.3.The following table shows the annual revenues (in millions of dollars)of a pharmaceutical company over the period 1990-2011. Excel scatterplot shown above indicates that the annual revenues have an increasing trend.Therefore,linear,exponential,quadratic and cubic models were used to fit the trend,and the following relevant information became available after applying linear regression. Refer to Exhibit 18.3.What is the revenue forecast for 2013 found by the trend regression equation with the best fit?
A)About 2 billion and 512 million dollars
B)About 2 billion and 95 million dollars
C)About 2 billion and 248 million dollars
D)About 2 billion and 290 million dollars

Question

Exhibit 18.3.The following table shows the annual revenues (in millions of dollars)of a pharmaceutical company over the period 1990-2011.   Excel scatterplot shown above indicates that the annual revenues have an increasing trend.Therefore,linear,exponential,quadratic and cubic models were used to fit the trend,and the following relevant information became available after applying linear regression.  Refer to Exhibit 18.3.What is the revenue forecast for 2013 found by the trend regression equation with the best fit?
A)About 2 billion and 512 million dollars 
B)About 2 billion and 95 million dollars 
C)About 2 billion and 248 million dollars 
D)About 2 billion and 290 million dollars

Quizplus · Accepted Answer

The Answer of Exhibit 18.3.The following table shows the annual revenues (in millions of dollars)of a pharmaceutical company over the period 1990-2011.   Excel scatterplot shown above indicates that the annual revenues have an increasing trend.Therefore,linear,exponential,quadratic and cubic models were used to fit the trend,and the following relevant information became available after applying linear regression.  Refer to Exhibit 18.3.What is the revenue forecast for 2013 found by the trend regression equation with the best fit?
A)About 2 billion and 512 million dollars 
B)About 2 billion and 95 million dollars 
C)About 2 billion and 248 million dollars 
D)About 2 billion and 290 million dollars