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Business Income After 6 Years

Started plotting my business income 5 years ago in 1997. I do it quarterly because later on I want to check for the seasonal variation. My regression equation is:

Income = $2300.00 + 150t
t = time in quarters (3months = quarter)

What kind of fortune (income) should I expect to rake in by the end of year 2003?

This is a sample question so do not make it difficult. I am NOT asking for the cumulative income.


Solution Preview

Let's assume that you started plotting income in the 1st quarter of 1997, and that you set t = 0 to be in that quarter. What we need to do here is:

1) Calculate what ...

Solution Summary

Basic calculations to predict the income after 6 years of operating a business.