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:

i. Using log, or In, explain how you would obtain the linear regression equation connecting y, A and x. (4 marks)

ii. Hence, estimate the value of A and g (14 marks)

iii. Predict the value of y when x=5 (2 marks)