Question

The exponential regression equation is as follows: Sales=bo e 0. 01 Month If Month 5 sales is $1200, what is the sales in Month 6? Answer based on the interpretation of the coefficient, not based on the actual calculation by the regression equation. (Round your answer to two decimal places if needed. For example, 10. 12. ) Your Answer: _____ The exponential regression equation is as follows: Sales boe 0. 03*Month If Month 5 sales is $1200, what is the sales in Month 7? Answer based on the interpretation of the coefficient, not based on the actual calculation by the regression equation. (Round your answer to two decimal places if needed. For example, 1300. 12. ) Your Answer: _____

Answer 1

For the first question, the exponential regression equation is Sales = bo * e^(0.01 * Month). The coefficient 0.01 represents the growth rate of sales per month. Since the sales in Month 5 is $1200, we can estimate that the sales in Month 6 will be $1200 * e^(0.01) ≈ $1212.04.

For the second question, the exponential regression equation is Sales = bo * e^(0.03 * Month). The coefficient 0.03 represents the growth rate of sales per month. Since the sales in Month 5 is $1200, we can estimate that the sales in Month 7 will be $1200 * e^(0.03 * 2) ≈ $1243.62.