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A cosmetics manufacturer’s marketing department has developed a linear trend equation that can be used to predict annual sales of its popular Hand & Foot Cream. Ft 80+15t where Ft = Annual Sales (000 bottles) t = 0 corresponds to 1990 a. Are annual sales increasing or decreasing? By how much? Annual sales ar b. Predict annual sales for the year 2006 using the equation. Annual sales are thousands of bottles. Click to select) V increasing by thousands bottles per year. decreasing

The trend equation is Ft = 80+15t
Where Ft = Annual sales in thousands
t = sequential number of the year
a) Annual sales are increasing by 15 thousand bottles per year.
b) If 1990 corresponds to period 0,2006 is period 16. So for year 2006 t=16.
Ft= 80+15t = 80+(15×16) = 80+240 = 320
So annual sales for 2006 using the equation are 320 thousands
 
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