Question

A manager uses the following equation to predict monthly receipts: Yt = 40,000 + 150t. What is the forecast for July if t = 0 in April of this year?

Answer 1

If t = 0 in April of this year, then t = 3 in July of this year (since there are three months between April and July). We can substitute this value of t into the equation to find the forecast for July:

Yt = 40,000 + 150t
Y3 = 40,000 + 150(3)
Y3 = 40,000 + 450
Y3 = 40,450

Therefore, the forecast for July is $40,450.