Question

The following table shows the approximate percentage of mortgages issued in the U.S. that are subprime (normally considered risky).

Year 1 2 3 4 5 6 7 8
% 3 4 5 8 11 13 13.5 14

a.Graph the data. Copy the graph here

b. Fit an exponential model. Write the equation. M(t) =

c.Fit a Logarithmic Model. Write the equation. M(t) =

d.Fit a cubic Model. Write the equation. M(t) =

e.Choose the model that best fits the data. Give a reason for you choice. M(t) =

f.Use the model to predict the percentage in year 10. How accurate is the prediction for year 15?