Question

A customer's stock value seems to be rising exponentially. The equation for
the linearized regression line that models this situation is log(y) = 0.30X +0.296
where x represents number of weeks. Which of the following is the best
approximation of the number of weeks that will pass before the value of the
stock reaches $600?

Answer 1

Hello!

The answer is:

The correct option is A. 8.3.

Why?

To calculate the number of weeks that will pass, we need to use the given information.From the statement we know that we need to use the value of $600 substituting it as "y", and then, isolate "x", so, calculating we have:

$log(y)=0.30x+0.296\\\\log(600)=0.30x+0.296\\\\2.78=0.30x+0.296\\\\2.78-0.296=0.30x\\\\x=\frac{2.78-0.296}{0.30}=8.28=8.3$

Hence, the correct option is A. 8.3.

Have a nice day!