SOLUTION: The chart shows the exchange rate between the currency of Bolivia and the US dollars 1998- 5.51 > bolivianos to US dollars 1999- 5.81 2000- 6.18 2001- 6.61 2002- 7.17 2003

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Question 626533: The chart shows the exchange rate between the currency of Bolivia and the US
dollars
1998- 5.51 > bolivianos to US dollars
1999- 5.81
2000- 6.18
2001- 6.61
2002- 7.17
2003- 7.66
Find an equation that models the bolivianos per US dollars as a function of the
number of years since 1998.
And if the trend continues predict the number of bolivianos per US dollar in
2010.
Can you help me I haven't been able to solve these questions with this chart?


Answer by Edwin McCravy(20054) About Me  (Show Source):
You can put this solution on YOUR website!
 
 1998- 5.51 > bolivianos to US dollars
 1999- 5.81
 2000- 6.18
 2001- 6.61
 2002- 7.17
 2003- 7.66

Find the regression line for the points, using 0 for the year 1998

(0,5.51), (1,5.81), (2,6.18), (3,6.61), (4,7.17), (5,7.66)

If you have a TI-84 calculator, 

Press STAT
Press 1
Enter the x-values in L1 and the y-values in L2
Press STAT
Press the right arrow key
Press 4
Scroll down to Calculate
Press ENTER

See this;
 
y=ax+b 
a=.436
b-5.4
rē=.9887297153
r=.9943488901

The equation is 

y = .436x + 5.4

If you don't have a TI-84 calculator then you have to use a 
complicated formula, or you can use Excel.

To find the prediction for 2010, since 1998 corresponds to x=0,
'2010 corresponds to x=12 corresponds to 12, so substitute x=14
and get:

y = .436x + 5.4
y = .436(12) + 5.4
y = 10.632

Edwin