The fitted annual sales trend is y_t = 227e^.047^t.The values of y_t are: A) rising by an increasing amount each period. B) rising by a declining amount each period. C) declining by a declining amount each period. D) declining by an increasing amount each period.

Question

Quizplus · Accepted Answer

The equation y_t = 227e^.047t represents an exponential growth model, where the sales trend is increasing at a constant percentage rate of 4.7% per period. This means the sales are rising by an increasing amount each period.

The Fitted Annual Sales Trend Is Yt = 227e

The Fitted Annual Sales Trend Is Y_t = 227e