(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.) T₁ (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.) $ million
(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.) T₁ (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.) $ million
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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Transcribed Image Text:**Overview of Revenue Growth in a Frozen Pizza Company**
A frozen pizza company has been expanding its business by supplying products to public schools throughout the eastern United States. Using an aggressive marketing strategy, this company has experienced a significant increase in revenue by approximately $10 million over the past decade. However, recent years have seen a slowdown in their growth rate due to increased competition.
**Annual Revenue Data**
The table below presents the annual revenue, in millions of dollars, for the past 10 years:
| Year | Revenue (Millions) |
|------|--------------------|
| 1 | 8.53 |
| 2 | 10.84 |
| 3 | 12.98 |
| 4 | 14.11 |
| 5 | 16.31 |
| 6 | 17.11 |
| 7 | 18.27 |
| 8 | 18.55 |
| 9 | 18.40 |
| 10 | 18.43 |
**Analysis**
- The data reveals a steady increase in revenue from Year 1 through Year 8.
- A noticeable slowdown in revenue growth occurs in Years 9 and 10, which corresponds with increased market competition.
- The trend suggests that while the marketing strategy was initially successful, it may require adaptation to maintain growth amidst escalating competition.
![**Quadratic Trend Equation Development and Revenue Forecasting**
**(b) Quadratic Trend Equation:**
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.
\[ T_t = \text{(To be filled)} \]
**(c) Revenue Forecast for Year 11:**
Using the trend equation developed in part (b), forecast revenue in millions of dollars in year 11. Round your answer to two decimal places.
\[ \text{\$} \_\_\_\_\_\_ \text{ million} \]
This exercise involves utilizing statistical tools to analyze trends and make financial forecasts based on historical data, an essential skill in business analytics and economics.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe2fdea76-24b5-4e92-ab93-0d275ab88ec3%2Fbd63012e-7579-4e19-9501-f86c6de571cc%2Fkjla0lk_processed.png&w=3840&q=75)
Transcribed Image Text:**Quadratic Trend Equation Development and Revenue Forecasting**
**(b) Quadratic Trend Equation:**
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.
\[ T_t = \text{(To be filled)} \]
**(c) Revenue Forecast for Year 11:**
Using the trend equation developed in part (b), forecast revenue in millions of dollars in year 11. Round your answer to two decimal places.
\[ \text{\$} \_\_\_\_\_\_ \text{ million} \]
This exercise involves utilizing statistical tools to analyze trends and make financial forecasts based on historical data, an essential skill in business analytics and economics.
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