Question

Devin invested money into a bank account. The table below is the value of Devin’s investment over time.

I have attached a pic of the data chart please look at it.

a.
What type of equation would best model this data?
b.
Find the regression equation.
c.
What does the y-intercept of this function represent?
d.
Is this a strong correlation? Why or why not?
e.
What was the value of the investment after 6 years? Round your answer to the nearest dollar.

You must show all of your work to receive credit.

Answer 1

This data best fits an exponential model.

The regression equation would be:
y = 8385(1.12)^x (There are online calculators for this)

The y-intercept would be the starting value of the account.

Yes, the correlation coefficient is 0.9983.

If you input 6 into the equation, you will get a value of $16,550.