Automobile Ownership — Test

Question 2 • Financial Algebra/Mathematics

Use the given data to perform an exponential regression and find the equation that best models the treadmill's depreciation. What will the treadmill's value be after 6 years?

Answer

y is equal to 4 comma 999 point 7 5 8 8 2 times 0 point 1 1 6 6 3 6 to the x th power; the treadmill’s value after 6 years is approximately 2 dollars comma 384 point 5 5

y is equal to 5 comma 999 point 7 5 8 8 2 times 0 point 8 8 9 8 8 4 to the x th power; the treadmill’s value after 6 years is approximately 2 dollars comma 979 point 4 4

y is equal to 3 comma 999 point 7 5 8 8 2 times 0 point 8 8 9 8 8 4 to the x th power; the treadmill’s value after 6 years is approximately 1 dollars comma 986 point 2 5

y is equal to 4 comma 999 point 7 5 8 8 2 times 0 point 8 8 9 8 8 4 to the x th power; the treadmill’s value after 6 years is approximately 2 dollars comma 482 point 8 5

Explanation

The exponential regression model is y = 4,999.75882(0.889884)^x. Substitute x = 6 to find the value after six years: 4,999.75882(0.889884)^6 ≈ $2,482.85. So the treadmill’s value is approximately $2,482.85, as stated in choice C.

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