QuestionIn the formula , what sign do you expect for regarding car prices over the years? Explain.
Studdy Solution
STEP 1
Assumptions1. The formula models the average retail price, , of a new car years after2000.
. is the slope of the line, which represents the rate of change in the price of a new car per year.
3. is the y-intercept, which represents the average retail price of a new car in the year2000.
4. A positive slope indicates an increase in the average retail price over time, a negative slope indicates a decrease, and a slope of zero indicates no change.
STEP 2
To determine whether is positive, negative, or zero, we need to consider the trend in the average retail price of a new car over time.
STEP 3
Generally, the price of a new car increases over time due to factors such as inflation, improvements in technology, and increased production costs.
STEP 4
Therefore, we would expect the average retail price of a new car to increase each year after2000.
STEP 5
If the average retail price of a new car increases each year, then the slope of the line, , should be positive.
So, we would expect to be positive.
Was this helpful?
