Question

The data points show an item's value y (in dollars) at a time x (in years) after its purchase.Each figure has the same data points.However, each figure has a different curve fitting the data.The equation for each curve is also shown.Answer the questions that follow.

Answer 1

a) We can see that the line that best fit the data points is the one in Figure 1.

This is because it minimizes the distance between the data points and the model curve.

b) We can use the equation from Figure 1 for x = 11 to find the estimation from the model.

We can calculate it as:

$\begin{gathered} y=51(1.13)^x \\ y=51(1.13)^{11} \\ y\approx51\cdot3.836 \\ y\approx195.63 \end{gathered}$

Answer:

a) Figure 1

b) $195.63