Question

A celebrity called Wayne East has been having some money problems recently. He is thinking of investing in the greatest record in the world, and wants to know how the value will change over time. He has an exponential regression model where his predictor is time in months, and response variable is money, measured in thousands of dollars. The alpha value is 4.2, and beta is 1.03. Based on this model, how much money (in thousands) will he have after six months

Answer 1

Answer:

Wayne west would have $5,015 in six months

Step-by-step explanation:

The formula for exponential regression model is y = αβˣ

Where y is amount of money in 1000 dollars

           x is time in months

We are given that α = 4.2 and  β = 1.03 and x = 6 months

Therefore, based on this model, y = αβˣ, the amount he would have in 6 months, y = $4.2*(1.03) ^{6}$

y = 5.015 × 1000 = $ 5,015