New York City Housing Costs: Downtown The following table shows the averag...

New York City Housing Costs: Downtown The following table shows the average price of a two-bedroom apartment in downtown New York City during the real estate boom from 1994 to 2004.

a. Use exponential regression to model the price P(t) as a function of time t since 1994. Include a sketch of the points and the regression curve. (Round the coefficients to 3 decimal places.) HINT [See Example 6.]

b. Extrapolate your model to estimate the cost of a two bedroom downtown apartment in 2005.

Example 6:

The following table shows annual expenditure on health in the United States from 1980 through 2010 (t = 0 represents 1980).*

a. Find the exponential regression model

for the annual expenditure.

b. Use the regression model to estimate the expenditure in 2002 (t = 22; the actual expenditure was approximately $1,550 billion).

Solution

a. We use technology to obtain the exponential regression curve (see Figure 13):

which is close to the actual number of around $1,550 billion.