Question

Stevie knows the following information regarding sales at the convenience mart he works at. He notices that sales have appeared to rise over time.

a. Fit a linear curve to the data using Excel or another spreadsheet application. What is the equation for the model? What is the R-squared value?

b. Fit an power curve to the data. What is the equation for the model? What is the R-squared value?

c. Fit an exponential curve to the data. What is the equation for the model? What is the R-squared value?

d. Based on highest R-squared value, use the equation that fits the curve best to predict the sales for the year 7.

Year	Sales
1	10,000
2	12,000
3	16,000
4	22,000
5	30,000
6	40,000

Answer 1

Using excel fit all 3 curves so there equations and R² value

a) Linear curve : 6000x + 667  R² = o.944

b) Power curve: 8300x^0.767 R² = 899

c) Exponential Curve: 6947e^0.291x R² = 0.998

d) Best R² value is of exponential curve so putting x = 7 in exponential equation

Sales = y = 6947e^0.291*7 = 53266.62

So sales will be 53266

PFA all 3 curves