Phoenix Lumber Company uses the number of construction permits issued to help es
ID: 1192982 • Letter: P
Question
Phoenix Lumber Company uses the number of construction permits issued to help estimate demand (sales). The firm collected the following data on annual sales and number of construction permits issued in its market area:
No. of Construction
Sales
Year
Permits Issued (000)
(1,000,000)
2003
6.50
10.30
2004
6.20
10.10
2005
6.60
10.50
2006
7.30
10.80
2007
7.80
11.20
2008
8.20
11.40
2009
8.30
11.30
No. of Construction
Sales
Year
Permits Issued (000)
(1,000,000)
2003
6.50
10.30
2004
6.20
10.10
2005
6.60
10.50
2006
7.30
10.80
2007
7.80
11.20
2008
8.20
11.40
2009
8.30
11.30
Explanation / Answer
(a) independent variable is no. of construction permits used , while sales are dependent because more the construction permits are issued, the sales will be more.