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The value of a certain investment over time is given in the table below. Answer the questions below to determine what kind of function would best fit the data, linear or exponential.

The value of a certain investment over time is given in the table below. Answer the-example-1
User K Prime
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1 Answer

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linear function would best fit the data because as x increases, the y values change by increasing. The slope of this function is approximately 4518

What is a linear equation?

What kind of function would best fit the data, linear or exponential?

At point 1:

x = 1

y = 23,002.99

At point 2:

x = 2

y = 27,520.99

Slope, m = change in y / change in x

= (27,520.99 - 23,002.99) / (2 - 1)

= 4518 / 1

m = 2519

At point 3:

x = 3

y = 32,038.99

Slope, m = change in y / change in x

= (32,038.99 - 27,520.99) / (3 - 2)

= 4518 / 1

m = 4518

Therefore, it is a linear function.

User Remigius Stalder
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