Question 544909
The value of stock ABC Corporation has been increasing by the same fixed dollar amount each year. the pattern is expected to continue. 
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Let 1980 be the base year corresponding to X=0, with x=1,2,3....corresponding to later years. ABC stock was selling at $37.50 in 1985.
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That tells you the "y" intercept is 37.50
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ABC stock was selling at $37.50 in 1985, and $45.00 in 1988. 
That gives you 2 points (0,37.50) and (3,45.00)
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So the slope is (45-37.5)/3 = 7.5/3 = 2.5
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If y represents the price of ABC stock, find the equation y=mx+b that relates x and y, 
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Answer: y = 2.5x+37.5
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and predict the price in the year 2000.
f(5) = 2.5*5+37.5 =  $50.00
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Cheers,
Stan H.
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