Question

The table below shows the amount of money spent on skin diving and scuba equipment in some recent years.Skin Diving and Scuba Equipment YearSales ($millions)199331519943221995328199634019983451999363 Let x represent the year and y represent the amount of sales, in millions of dollars, in the regression equation.y = 7.36 x minus 14,354.33,Use the regression equation to predict the sales of skin diving and scuba equipment in the year 2008.a.44,000,000b.440,000,000c.42,455,000d.424,550,000

Answer 1

We have a data set which is represented by the following regression line:

$y=7.36x-14354.33$

With this regression line we can relate sales and years.

Then, if we want to estimate the sales of year 2008, we replace x with 2008 and calculate y:

$\begin{gathered} y=7.36(2008)-14354.33 \\ y=14778.88-14354.33 \\ y=424.55 \end{gathered}$

As y is expressed in millions, we can calculate the total sales by multiplying this by a million:

$\text{Sales}=424.55\cdot10^6=424,550,000$

Answer: 424,550,000 [Option d]