The correct option would be C. The error is 0.03, and the value predicted by the model is an underestimate.
The exponential regression model is given by y=ab^t , where
t corresponds to the year, and in this case,
t=12 corresponds to the year 2013.
The error can be calculated as the actual value minus the predicted value. If the error is positive, it means the predicted value is an underestimate, and if the error is negative, it means the predicted value is an overestimate.
Given the options:
A. The error is -0.03, and the value predicted by the model is an underestimate. (This suggests a negative error, which means the predicted value is an overestimate.)
B. The error is -0.03, and the value predicted by the model is an overestimate. (This suggests a negative error, which means the predicted value is an overestimate.)
C. The error is 0.03, and the value predicted by the model is an underestimate. (This suggests a positive error, which means the predicted value is an underestimate.)
D. The error is 0.03, and the value predicted by the model is an overestimate. (This suggests a positive error, which means the predicted value is an underestimate.)
Given the context, the correct option would be:
C. The error is 0.03, and the value predicted by the model is an underestimate.
Question
The table gives the average automated teller machine (ATM) surcharge fee, in dollars, in the United States for selected years from 2002 to 2014. An exponential regression y=ab^t is used to model these data, where t=2 corresponds to 2002. Based on the exponential model, what is the error in the model, in dollars, for 2013, and is the value predicted by the model for 2013 an underestimate or overestimate of the surcharge fee? A The error is —0,03, and the value predicted by the model is an underestimate. B The error is —0.03, and the value predicted by the model is an overestimate. The error is 0.03, and the value predicted by the model is an underestimate (b) The error is 0,03, and the value predicted by the model is an overestimate.