If the least squares equation for sales data going from 2004 to 2008 is = 10 + 1.3t (in million $),what is the value of t and the forecast for 2010?
A)t = 6, = 17.8
B)t = 0, = 10.0
C)t = 7, = 19.1
D)t = 6, = 0.0

Question

If the least squares equation for sales data going from 2004 to 2008 is  = 10 + 1.3t (in million $),what is the value of t and the forecast for 2010?
A)t = 6, = 17.8 
B)t = 0, = 10.0 
C)t = 7, = 19.1 
D)t = 6, = 0.0

Quizplus · Accepted Answer

The equation is in the form of y = b + mx, where y is the sales in million dollars, x is the year (t), b is the y-intercept (in million dollars) and m is the slope (in million dollars per year).

Comparing the given equation with this standard form, we can see that the y-intercept is 10 million dollars and the slope is 1.3 million dollars per year.

To find the forecast for 2010, we need to substitute t = 7 (since 2004 is year 1) into the equation:

Sales in 2010 = 10 + 1.3(7) = 19.1 million dollars

Therefore, the correct choice is C.

If the Least Squares Equation for Sales Data Going from 2004