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National Health Expenditures Health spending is projected to grow at an average rate of 5.8% from 2012 through 2022, 1.0 percentage point faster than the expected average annual growth in the gross domestic product (GDP). The table gives the national health care expenditures, in billions of dollars, from 2006 and projected to 2022.
Year | Expenditures ($ billions) | Year | Expenditures ($ billions) |
2006 | 2,163 | 2015 | 3,273 |
2007 | 2,298 | 2016 | 3,458 |
2008 | 2,407 | 2017 | 3,660 |
2009 | 2,501 | 2018 | 3,889 |
2010 | 2,600 | 2019 | 4,142 |
2011 | 2,701 | 2020 | 4,416 |
2012 | 2,807 | 2021 | 4,702 |
2013 | 2,915 | 2022 | 5,009 |
2014 | 3,093 |
(Source: Centers for Medicare & Medicaid Services)
a. Create a scatter plot of the data, with x equal to the number of years after 2000 and y equal to the national health care expenditures in billions of dollars.
b. Choose an appropriate function to model the data, and write the equation of that model.
c. Graph your model and the scatter plot on the same axes.
d. Use the rounded model to find the average rate of change of health care expenditures from 2006 to 2012; from 2012 to 2022. Round to one decimal place.
e. Use the rounded model to find the percent increase in health care expenditures from 2012 to 2013; from 2021 to 2022. Round to one decimal place. Is the statement that health spending is projected to grow at an average rate of 5.8 percent from 2012 through 2022 reasonable?
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