SOLUTION: The annual revenue of Amazon.com rose from approximately $10.7 billion in 2006 to $34.2 billion in 2010.� (a) Use this information to find both a linear model and an exponential m

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Question 1097448: The annual revenue of Amazon.com rose from approximately $10.7 billion in 2006 to $34.2 billion in 2010.�
(a) Use this information to find both a linear model and an exponential model for Amazon.com's annual revenue I (in billions of dollars) as a function of time t in years since 2000. HINT [See Example 2.] (Round all coefficients to three significant digits.)
linear model I(t) =

exponential model I(t) =

Which of these models would you judge to be more appropriate to the data shown below?
t (Year since 2000) 6 7 8 9 10
I ($ billions) 10.7 14.8 19.2 24.5 34.2
The is more appropriate.
(b) Use the better of the two models from part (a) to predict the 2007 figure and compare it with the actual figure above. (Round your answer to one decimal place.)
The model yields an estimate of $
billion, which is not too far from the actual figure.
Answer by Boreal(15235) (Show Source):
You can put this solution on YOUR website!
The linear model is y=5.67x-24.8 with an R^2 of 0.981
The exponential model is y=ab^x=1.99+1.32^x with an R^2 of 0.997.
In 2007, the prediction would be $14.397 billion, with actual of $14.8 billion. Both models are good in years 6-9.