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Use the trend line to predict the year in which the stock price first exceeds 40$ per share.

Use the trend line to predict the year in which the stock price first exceeds 40$ per-example-1
User Dgiugg
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1 Answer

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Step-by-step explanation:

Year 28

Step-by-step explanation:

The trend line predicts what is the price y in year x, so, to answer the question, we need to replace y by $40 and solve for x. Then:

y = 0.753x + 18.867

40 = 0.753x + 18.867

Subtracting 18.867 from both sides:

40 - 18.867 = 0.753x + 18.867 - 180867

21.133 = 0.753x

Divide both sides by 0.753

21.133/0.753 = 0.753x/0.753

28.06 = x

So, after 28.06 years, the price will be 40$, therefore, the price will exceed $40 per share in year 28.

User Sumanth Shetty
by
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