Question

Predict adjust wage in 2028 does this prediction require interpolation or extrapolating

Answer 1

To predict the adjusted wage in 2028, you need to do an extrapolation, since the value is out of the set of data you have.

To extrapolate you can use the next formula:

`y=(y_1-y_0)/(x_1-x_0)(x-x_0)+y_0`

Where x0=2010 and y0=$8.63

x1=2020 and y1=$7.25

and x is the year you want to predict x=2028

Replace the values in the formula:

`\begin{gathered} y=\frac{7.25_{}-8.63_{}}{2020_{}-2010}(2028-2010)+8.63 \\ y=(-1.38)/(10)(8)+8.63 \\ y=-1.104+8.63 \\ y=7.53 \end{gathered}`

Thus, the predicted minimum wage in adjusted 2020 dollars for 2028 is $7.53.