Math Problem Statement
Determine the linear regression equation that models the set of data above, and use this equation to answer the questions below. Based on this regression model, the value of this investment was ____ in the year 1985. Based on the regression model, the value of this investment is ____ at a rate of ____ per year.
Solution
The linear regression model for the given data provides the following results:
- The value of the investment in 1985 (when ) was approximately $15,491.47.
- The investment value decreases at a rate of approximately $374.87 per year.
Would you like more details or explanations on this?
Here are five related questions to consider:
- How do you calculate the slope of a linear regression model?
- What does the intercept in a linear regression equation represent?
- How can you predict future values using the regression model?
- Why is rounding important when dealing with financial models?
- How does a decrease in value over time affect long-term investment decisions?
Tip: When interpreting the slope in financial contexts, remember that a negative slope indicates a decrease in value over time.
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Math Problem Analysis
Mathematical Concepts
Linear Regression
Algebra
Formulas
y = mx + b
Theorems
Slope-Intercept Form
Linear Regression
Suitable Grade Level
Grade 11-12