The price of a widget was $299. In five years, the price dropped to $149. Assume a linearly trend.

Question

1. The price of a widget was $299. In five years, the price dropped to $149. Assume a linearly trend.

(a) Find a linear model P = ax + b, where P is the price at any time x.

(b) Use this model to predict the price in 7 years.

Answer 1

change per year = (149-299)/5 = -150/5 = -30

Price = -30x +299

in y years Price = -30(7) + 299 = $89