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The accompanying table shows the value of a car over time that was purchased for

15700 dollars, where x is years and y is the value of the car in dollars. Write an
exponential regression equation for this set of data, rounding all coefficients to the
nearest hundredth. Using this equation, determine the value of the car, to the nearest
cent, after 9 years.
Years (x)
0
1
2
3
4
5
6

Value in Dollars (y)
15700
14220
13060
11446
10927
9140
8418

User Leonor
by
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1 Answer

4 votes

Answer:

To write an exponential regression equation for this set of data, we can use the formula y = ab^x, where y is the value of the car in dollars, x is the number of years since purchase, a is the initial value of the car, and b is the rate of depreciation.

To find the values of a and b, we can use the first two data points:

y = ab^x

14220 = ab^1

Solving for a, we get:

a = 14220 / b

Now, we can substitute this expression for a into the first data point:

y = ab^x

15700 = (14220 / b) * b^0

Simplifying, we get:

15700 = 14220

This is not a valid equation, so we need to adjust our estimate for the rate of depreciation, b. One way to do this is to take the average of the depreciation rates between each pair of consecutive data points:

b = (14220/15700)^(1/6)

b = 0.9497

Now, we can use this value of b to find the value of a:

a = 14220 / b

a = 14955.15

Therefore, the exponential regression equation for this set of data is:

y = 14955.15 * 0.9497^x

To find the value of the car after 9 years, we can substitute x = 9 into the equation:

y = 14955.15 * 0.9497^9

y = 7327.78

Therefore, the value of the car, to the nearest cent, after 9 years is $7327.78.

User Ijustneedanswers
by
8.1k points