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A certain company produces and sells frozen pizzas to public schools throughout the eastern United States. Using a very aggressive marketing strategy, they have been able to increase their annual revenue by approxim increased competition has slowed their growth rate in the past few years. The annual revenue, in millions of dollars, for the previous 10 years is shown. Year Revenue 8.63 2 10.84 13.08 4 14.21 5 16.21 17.31 18.37 18.55 9 18.40 10 18.53

A certain company produces and sells frozen pizzas to public schools throughout the eastern United States. Using a very aggressive marketing strategy, they have been able to increase their annual revenue by approxim increased competition has slowed their growth rate in the past few years. The annual revenue, in millions of dollars, for the previous 10 years is shown. Year Revenue 8.63 2 10.84 13.08 4 14.21 5 16.21 17.31 18.37 18.55 9 18.40 10 18.53

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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### Educational Content on Analyzing Revenue Trends #### Context A company that produces and sells frozen pizzas to public schools across the eastern United States has successfully increased its annual revenue by approximately $10 million over the past decade. This growth has been attributed to an aggressive marketing strategy, although increased competition has recently slowed their growth rate. The table below shows the company's annual revenue over the last 10 years. #### Revenue Data | Year | Revenue (in millions of dollars) | |------|---------------------------------| | 1 | 8.63 | | 2 | 10.84 | | 3 | 13.08 | | 4 | 14.21 | | 5 | 16.21 | | 6 | 17.31 | | 7 | 18.37 | | 8 | 18.55 | | 9 | 18.40 | | 10 | 18.53 | #### Time Series Plots Below are graphs representing potential time series plots of the company's revenue over the 10-year period: 1. **First Plot**: Shows a general increase, indicating potential sustainable growth. 2. **Second Plot**: Displays a decline, suggesting a possible misrepresentation or alternative scenario. 3. **Third Plot**: Also shows a declining pattern which is inconsistent with the data. 4. **Fourth Plot**: Illustrates a steady increase, consistent with the data provided. #### Analysis of Trends **Comment on the Appropriateness of a Linear Trend:** - First and Fourth Plot: Indicate growth corresponding with the actual data showing $10 million revenue increase. These suggest that a linear or slightly curvilinear trend might fit well, given the general steady increase adorned by a plateauing effect in later years. - Second and Third Plot: Display patterns contrary to the factual trends. These graphs may not provide a meaningful trend for this scenario. **Multiple Choice Options:** - The time series plot shows that neither a linear nor a curvilinear trend is appropriate. - The time series plot shows that a curvilinear trend may be more appropriate. - The time series plot shows that a linear trend is most appropriate. #### Conclusion For accurately depicting the company’s growth over time, the first and fourth graphs are more effective. They visually represent the upward trend in revenue, helping to evaluate the company's financial
Transcribed Image Text:### Educational Content on Analyzing Revenue Trends #### Context A company that produces and sells frozen pizzas to public schools across the eastern United States has successfully increased its annual revenue by approximately $10 million over the past decade. This growth has been attributed to an aggressive marketing strategy, although increased competition has recently slowed their growth rate. The table below shows the company's annual revenue over the last 10 years. #### Revenue Data | Year | Revenue (in millions of dollars) | |------|---------------------------------| | 1 | 8.63 | | 2 | 10.84 | | 3 | 13.08 | | 4 | 14.21 | | 5 | 16.21 | | 6 | 17.31 | | 7 | 18.37 | | 8 | 18.55 | | 9 | 18.40 | | 10 | 18.53 | #### Time Series Plots Below are graphs representing potential time series plots of the company's revenue over the 10-year period: 1. **First Plot**: Shows a general increase, indicating potential sustainable growth. 2. **Second Plot**: Displays a decline, suggesting a possible misrepresentation or alternative scenario. 3. **Third Plot**: Also shows a declining pattern which is inconsistent with the data. 4. **Fourth Plot**: Illustrates a steady increase, consistent with the data provided. #### Analysis of Trends **Comment on the Appropriateness of a Linear Trend:** - First and Fourth Plot: Indicate growth corresponding with the actual data showing $10 million revenue increase. These suggest that a linear or slightly curvilinear trend might fit well, given the general steady increase adorned by a plateauing effect in later years. - Second and Third Plot: Display patterns contrary to the factual trends. These graphs may not provide a meaningful trend for this scenario. **Multiple Choice Options:** - The time series plot shows that neither a linear nor a curvilinear trend is appropriate. - The time series plot shows that a curvilinear trend may be more appropriate. - The time series plot shows that a linear trend is most appropriate. #### Conclusion For accurately depicting the company’s growth over time, the first and fourth graphs are more effective. They visually represent the upward trend in revenue, helping to evaluate the company's financial
**(b)** Using statistical software, develop a quadratic trend equation that can be used to forecast revenue (in millions of dollars). (Round your numerical values to three decimal places.) \[ T_t = \_\_\_\_\_\_\_ \] **(c)** Using the trend equation developed in part (b), forecast revenue (in millions of dollars) in year 11. (Round your answer to two decimal places.) \[ \$\_\_\_\_\_\_\_ \text{ million} \]
Transcribed Image Text:**(b)** Using statistical software, develop a quadratic trend equation that can be used to forecast revenue (in millions of dollars). (Round your numerical values to three decimal places.) \[ T_t = \_\_\_\_\_\_\_ \] **(c)** Using the trend equation developed in part (b), forecast revenue (in millions of dollars) in year 11. (Round your answer to two decimal places.) \[ \$\_\_\_\_\_\_\_ \text{ million} \]
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