Jessica plots the data points relating the amount of money she needs to repay a loan and the number of months she has been making payments. She calculates two regression models. Which is true?
Answer
A
The linear model better represents the situation because the amount she owes is decreasing by about the same amount every 6 months.
B
The linear model better represents the situation because according to the exponential model, the repayment amount will never be 0.
C
The exponential model better represents the situation because the amount she owes decreases by about the same amount every 6 months.
D
The exponential model better represents the situation because according to the linear model, the repayment amount will eventually be negative.