In 2006 the U.S. "housing bubble" was beginning to burst. Suppose one news article at the time stated: "The median price of a home sold in the United States in the third quarter of 2006 was $226,500, and forecasters predict that the median price of houses will fall by 8.1% each year." Assume that the median price decreases at the forecasted decay rate of -8.1%. (a) Find the decay factor a. a = Find an exponential decay model E(x) = Ca for the median price of a home sold in the United States x years since the prediction. E(x)= (b) Use the model found in part (a) to predict median price of homes sold in the third quarter of 2009. (Round your answer to the nearest cent.) $

In 2006 the U.S. "housing bubble" was beginning to burst. Suppose one news article at the time stated: "The median price of a home sold in the United States in the third quarter of 2006 was $226,500, and forecasters predict that the median price of houses will fall by 8.1% each year." Assume that the median price decreases at the forecasted decay rate of -8.1%. (a) Find the decay factor a. a = Find an exponential decay model E(x) = Ca for the median price of a home sold in the United States x years since the prediction. E(x)= (b) Use the model found in part (a) to predict median price of homes sold in the third quarter of 2009. (Round your answer to the nearest cent.) $

College Algebra

1st Edition

ISBN:9781938168383

Author:Jay Abramson

Publisher:Jay Abramson

Chapter6: Exponential And Logarithmic Functions

Section6.8: Fitting Exponential Models To Data

Problem 1TI: Table 2 shows a recent graduate’s credit card balance each month after graduation. a. Use...

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