Question: The manager of a company believes that the sales y of the company grows at a constant annual percentage rate of change g and

y= A (1+g) ^X

Where y is the estimate at the end of year x

g is the percentage annual rate of growth.

A is the value of y at year 0

The table below shows the values of y and x:

Year x 1 2 3 4

Sales value 315,000 330,750 347,290 364,650

Of y

1. Using log, or In, explain how you would obtain the linear regression equation connecting y, A and x. (4 marks)
2. Hence, estimate the value of A and g (14 marks)
3. Predict the value of y when x=5 (2 marks)

[Maintain all calculations to 4 decimal places]

Total Marks 20

Price: $2.99

Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document