Assume that there is a positive linear correlation between the variable R (return rate in percent of a financial investment) and the variable t (age in years of the investment) given by the regression equation R = 2.3t + 4.8. Without further information, can we assume there is a cause-and-effect relationship between the return rate and the age of the investment? If the investment continues to grow at a constant rate, what is the expected return rate when the investment is 7 years old? If the investment continues to grow at a constant rate, how old is the investment when the return rate is 30%?
Assume that there is a positive linear correlation between the variable R (return rate in percent of a financial investment) and the variable t (age in years of the investment) given by the regression equation R = 2.3t + 4.8. Without further information, can we assume there is a cause-and-effect relationship between the return rate and the age of the investment? If the investment continues to grow at a constant rate, what is the expected return rate when the investment is 7 years old? If the investment continues to grow at a constant rate, how old is the investment when the return rate is 30%?
Chapter4: Linear Functions
Section: Chapter Questions
Problem 28PT: For the following exercises, use Table 4 which shows the percent of unemployed persons 25 years or...
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Assume that there is a
- Without further information, can we assume there is a cause-and-effect relationship between the return rate and the age of the investment?
- If the investment continues to grow at a constant rate, what is the expected return rate when the investment is 7 years old?
- If the investment continues to grow at a constant rate, how old is the investment when the return rate is 30%?
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