Final answer:
The question pertains to Business, specifically to financial forecasting, inventory management, and business investment, as it relates to Fairchild Garden Supply's expected sales growth and inventory strategy. It also touches on the application of mathematical models in sales prediction and the role of business investment in economic growth.
Step-by-step explanation:
The subject of this question is Business, with a focus on financial forecasting and inventory management strategies. The scenario presented involves Fairchild Garden Supply, a company that is forecasting a 15% increase in sales for the upcoming year and is using a mathematical equation to determine inventory requirements. This equation takes into account the sales forecast and the days of inventory on hand to calculate the necessary inventory levels. In the context of business, this type of problem-solving is critical for ensuring efficiency in operations and meeting consumer demand without overstocking or understocking inventory.
The sales growth prediction using a regression model for an electronics retailer serves as an example of how mathematical models can help businesses forecast future sales. The equation ŷ = 101.32 + 2.48x allows for the prediction of sales on a given day within the 90-day period. It illustrates how businesses use quantitative analysis in financial decision-making.
Investment in new equipment and facilities during an economic expansion is another aspect of business investment that is crucial for sustaining economic growth. Firms may require additional resources to meet increased consumer demand, and investments such as these contribute to the broader economic health by driving profits and growth rates.