Question: A manager uses the following linear regression equation to predict monthly sales of books: Y = 50,000 + 125t Where t and Y refers to

A manager uses the following linear regression equation to predict monthly sales of books:

Y = 50,000 + 125t

Where t and Y refers to the time period and sales respectively.

1. What is the forecast for July of next year if t = 0 is April of this year?

50,000

51,875

51,900

None of the other options are correct

52,000

2. The sales of books are:

None of the other options are correct

Going up at a rate of 125 monthly

Going up at a rate of 50,000 yearly

staying the same

Going down at a rate of 125 yearly

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