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A company has developed a linear trend equation that can be used to predict its annual sales for a given product line. Ft = 80 + 15t Where Ft = annual sales, and t= 0 corresponds to 1990. What is the predicted annual sale for the year 2006?

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Answer:

320

Explanation:

If t = 0 corresponds to 1990, then at the year of 2006 t equals:

[tex]t = 2006 -1990 = 16\ years[/tex]

Predicted annual sales as a function of time is given by the following expression:

[tex]F(t) = 80+15t[/tex]

for t = 16:

[tex]F(16) = 80+15*16\\F = 320[/tex]

The predicted annual sale, for the given product line, for the year 2006 is 320.

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