SOLUTION: The table below shows the value,V, of an investment (in dollars) n years after 1994. n 1 3 7 12 14 19 V(n)5513 5820.22 6791 8091.68

Algebra ->  Linear-equations -> SOLUTION: The table below shows the value,V, of an investment (in dollars) n years after 1994. n 1 3 7 12 14 19 V(n)5513 5820.22 6791 8091.68       Log On


   

Question 1176844: The table below shows the value,V, of an investment (in dollars) n years after 1994.

n 1 3 7 12 14 19
V(n)5513 5820.22 6791 8091.68 8282 8879.65
Based on this regression model, the value of this investment was $ in the year 1994
Based on the regression model, the value of this investment is increasing
at a rate of $ per year.
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
usng the alcula statistical calculator, i get the following result.



placing the data on an excel spreadsheet, i get the following result.



the linear regression formula was rounded to:

y = 199.78 * x + 5364.96

the same equation could also be shown as:

y = 5364.96 + 199.78 * x

the base year is 1994 which corresponds to x = 0.

the value of the investment in 1994 is estimated to be 5364.96 based on the regression formula.

that would be the y-intercept on the graph which is the value of y when x = 0.

the average increase in the investment per year would be 199.78 based on the regression formula.

the format of the regression formula is a straight line.
the general form of the straight line is y = mx + b.
m is the slope
b is the y-intercept.

the slope is the average change per year.
the y-intercept is the value of y when the value of x = 0.
the value of x = 0 corresponds to the year 1994.