Question

The price of a movie ticket in a given year can be modeled by the regression equation y= 6.94(1.02^x) where y is the ticket price and x is the year. To the nearest cent which is the best prediction of the price of a ticket in year 20? (Year 1 = 2007)

A.$266.06
B.$10.31
C.$11.39
D.$12.57

Answer 1

The best prediction for price of ticket in 2026 is $10.31

Explanation:

We are given the following information in the question:

The price of a movie ticket in a given year can be modeled by the regression equation.

`y = 6.94(1.02)^x`

where y is the ticket price and x is the year.

We have to find the price of the ticket in year 20, where year 1 means 2007.

Putting x = 20 in the given equation, we have:

`y = 6.94(1.02)^x\\y = 6.94(1.02)^(20) = \$10.31`

Thus, the best prediction for price of ticket in 2026 is $10.31