Question

If plotted, the following sales series would appear curvilinear. This indicates that sales are increasing at a somewhat constant annual rate (percent). To fit the sales, therefore, a logarithmic equation should be used.

Year	Sales ($ millions)
2007		8.0
2008		10.4
2009		13.5
2010		17.6
2011		22.8
2012		29.3
2013		39.4
2014		50.5
2015		65.0
2016		84.1
2017		109.0

1) Determine the logarithmic equation.

y = _____ + ______t

2) Determine the coordinates of the points on the logarithmic straight line for 2007 and 2014.

Points (antilog) for 2007: _____

Points (antilog) for 2014: ______

3) By what percent did sales increase per year, on the average, during the period from 2007 to 2017?

Increased sales: _____%

4) Based on the equation, what are the estimated sales for 2018?

Estimated sales (antilog) $_______ millions

Answer 1