Question

x y
0.5 15,000
1 13,000
2 12,000
4 10,000
6 5,000
The loan amount is a function of time and can be represented by the line of best fit y=15,413−1,635x
, where x is the number of years. The table shows the values of the scatterplot. Using the equation for the line of best fit, what is the loan amount for year 4 and is it underestimating or overestimating the value in the table?

(1 point)
Responses

$8,873 and underestimating
$8,873 and underestimating

$10,000 and overestimating
$10,000 and overestimating

$8,873 and overestimating
$8,873 and overestimating

$10,000 and underestimating

Answer 1

y(4) = 15,413 − 1,635(4) = 15,413 − 6,540 = 8,873.
Compared to the table value 10,000, this is lower, so the model is underestimating. Answer: $8,873 and underestimating.