Question

In: Advanced Math

The following data represent the amount of money and invenstor has in an investment account each...

The following data represent the amount of money and invenstor has in an investment account each year for 10 years.

a. Let x=number of years since 1994 and find an exponential regression model of the form y=ab* for this data set, where y is the amount in the account x years since 1994.

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b. If the investor plans on retiring in 2021, what will be the predicted value of this accoutn at that time?

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c. When will the account be worth $50,000?

d. Make a graph of the scatterplot and exponential model below.

Year value of account

1994 $10,000

1995 $10,573

1996 $ 11,260

1997 $11,733

1998 $12,424

1999 $13,269

2000 $13,698

2001 $14,823

2002 $15,297

2003 $16,539

Solutions

Expert Solution

Note: to make the calculation easy, I've taken year 1994 as 4, 1995 as 5 and so on.


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