Question

Assume the sales of a certain appliance dealer can be approximated by a straight line. suppose that sales were $6000 in 1982 and $64000 in 1987. let x=0 represent 1982. find the equation giving yearly sales s and then use it to predict the yearly sales in 1990

Answer 1

In the 5 years between 1987 and 1982, sales has increased from 6000 to 64000, an amount of 58000. Thus the increase per year is 58000/5 = 11600. The s-intercept is the sales in year 0, namely 6000.

... s = $11600x + $6000

For x = 1990-1982 = 8, the value of s is predicted to be

... s = $11600·8 + $6000 = $98,800 . . . . sales in 1990