Refer to Exercise 101. Of what possible predictive use, then, is the kind of exponential...

Refer to Exercise 101. Of what possible predictive use, then, is the kind of exponential model given by the blogger in the article referred to?

Exerciser 101:

The following commentary and graph appeared in www .politicalcalculations.blogspot.com on August 30 2005:

One of the neater blogs I’ve recently encountered is The Real Returns, which offers a wealth of investing, market and economic data. Earlier this month, The Real Returns posted data related to the recent history of U.S. median house prices over the period from 1963 to 2004. The original source of the housing data is the U.S. Census Bureau.

Well, that kind of data deserves some curve-fitting and a calculator to estimate what the future U.S. median house price might be, so Political Calculations has extracted the data from 1973 onward to create the following chart:

Comment on the article and graph. HINT [See Exercise 90.]

Exercise 90:

Home Prices The median price of a home in the United States declined continuously over the period 2005–2008 at a rate of 5.5% per year from around $230 thousand in 2005. Write down a formula that predicts the median price of a home t years after 2005. Use your model to estimate the median home price in 2007 and 2010.