Based on annual data from 2000-2010, the Gadget Company estimates that sales are growing according to a linear trend: Q = 50,000 + 200t where t is time and t = 0 in 2000. a. Forecast sales for 2013. b. Do you see any problems with this forecasting method?
Based on annual data from 2000-2010, the Gadget Company estimates that sales are growing according to a linear trend: Q = 50,000 + 200t where t is time and t = 0 in 2000. a. Forecast sales for 2013. b. Do you see any problems with this forecasting method?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Based on annual data from 2000-2010, the Gadget Company estimates that sales are growing according to a linear trend:
Q = 50,000 + 200t
where t is time and t = 0 in 2000.
a. Forecast sales for 2013.
b. Do you see any problems with this
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